Karachi Port Trust

Student Names Enrolment Numbers

MADIHA SULTAN 2014/BUS.A/BS/16244

FARKHUNDA SULTAN 2014/BUS.A/BS/16219

SHEHNEELA REHMAN 2014/BUS.A./BS/16291

SHUMAILA HUSSAIN 2014/BUS.A/BS/16293

INTERNSHIP PROGRAM 2016H.R. Department One week from 22-Dec-2015 to 28-Dec-2015

Accounts Department One week from 29-Dec-2015 to 04-Jan-2016

Stores Department One week from 5-Jan-2016 to 11-Jan-2016

MIS Department One week from 12-Jan-2016 to 21-Jan-2016

JINNAH UNIVERSITY FOR WOMENBUSINESS ADMISNITRATION DEPARTMENT

ACKNOWLEDGEMENT

First, we take this opportunity to acknowledge our institution, “JINNAH UNIVERSITY FOR WOMEN” where we are pursuing our degree Bachelor of Business Administration. Above all, we would like to thank the Almighty ALLAH without whom this work could ever have been completed. Second, we impress our special thanks to MISS ZILL E HUMA, our Head of the Department of Jinnah University for Women, we also say thanks to all the staff of KPT who entertained us as we will be able to create our internship report, Project Guide for guidance, support and encouragement which helped us in completing our project. This report cannot be completed without the joint efforts of our team who did remarkable jobs. Each member has done her task which has given to them in a well manner.

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Dedication

Dedicated to our honorable Chairperson, Ma’am Zill-e-Huma who has facilitated and provided us a great opportunity to experience a vibrant business environment of the prestigious organization; the KPT.

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MISSION STATEMENT

"In pursuance of the Landlord Port Strategy, to lease out port infrastructure, land, access and assets to private port operators on long

term basis while retaining regulatory functions."

Vision

“To transform the port into a modern, competitive and user-friendly port, which would also be a transshipment hub of the region”.

EXECUTIVE SUMMARY

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Port is a vital Organization which is contributing major role in the economy of country and serving trade with its best Cargo Handling system and efficient berthing facilities of Cargo Shipping. Pakistan shares a 1,200 kilometers long coast line with the Arabian Sea - amid sea which joins the strategic oil line of Persian Gulf with the Indian Ocean. On it lie the Karachi Port which has been serving this part of the erstwhile Indian subcontinent and later Pakistan on its creation in 1947.

Karachi Port is the primary seaport of Pakistan that is aptly referred to as Gateway to Pakistan. It is the hub of maritime activity where the bulk of cargo is received and transported to the length and breadth of the country. Karachi Port Trust, a proud legatee of 125 years of meritorious performance, is ever mindful of the importance of this port.

Since the inception of Pakistan till the advent of 21st century Karachi had become the looming metropolis of Pakistan largely owing to the uniquely cut natural harbor of Karachi Port and consequently its population rose from 400,000 in 1947 to an estimated 18 million currently.

KPT is a trust with eleven trustees, including a chairman (chairperson). It has six divisions. All the divisions are assisting and controlling by a manager, follow by a deputy manager as well. KPT is generating its revenues through providing facilities for import and export. As KPT is a service providing industry, its operations are of great importance to generate revenue and to satisfy its customers. The second most important person in KPT is the H.O.D of operations, after the chairperson. All the operations are interlinking with each other’s and hence have a great influence on each other and the overall outcomes. Traffic is the department which has a direct interaction with the vessels of different types. It is assist by the TM (traffic manager). It is ports depart lies under Deputy Conservator, handling ship services. Shipping agents pay the service charges to the KPT not the ship owners.

Karachi Port is handling more than 60 % trade of the country apart from transit trade of Afghanistan and transshipment traffic. It has 11.5 km long channel with 30 dry cargo berths apart from three liquid cargo berths for handling POL & Non-POL products. The port provides round the clock safe navigation for vessels including container ships and tankers up to 75,000 DWT.

The KPT has two Container Terminals namely, Karachi International Container Terminal (KICT; operated by Hutchison) and Pakistan International Container Terminal (PICT; operated by ICTSI). Both the Terminals have been established by the private sector on BOT basis. For handling Bulk Cement through Pneumatic Pipes, M/s. Lucky Cement has established the Silos at West Wharf Berth No. 25.

The Deep Water Container Port is at completion stage and will commence operations by the end of year 2015. KPT is evaluating the feasibility to establish a dedicated coal terminal near Deep Water Container Port. The development of coal import terminal near DWCP would provide huge potential of coal handling to KPT in near future. Completion of reconstruction project of Berth No 15 to 17A in the year 2015 will also contribute to enhance the cargo handling operational capability of Karachi Port. In view of 13 meters deep draught berths at East Wharf.

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KPT is providing its employees a basic required training for the respective jobs but further and most advance training is needed to upgrade KPT’s operations as well as to get competent advantage over other ports. It will help the org. to keep updated with the current era and to bring advancement in the organization as well as the facilities and services it is providing to its customers, vessels etc.

Out of KPT’s 6 divisions and their concern departments we have interned in following four departments.

Human resource department Stores department Accounts department Management information system department

HUMAN RESOURCE DEPARTMENT

The human resource depart of KPT is working to fulfill the human need within the organization via job rotations, deputations, hiring and recruitment. Beside these activities HR department has a responsibility to maintain employee’s data from the day of stepping into the organization to the day of employee’s retirement. And in fact even after retirement i.e. pension, pensioner and pension holders. All the promotion within the organization is process in HR depart. HR depart has a single manager and deputy manager, who is accountable for all the activities and processes of the entire depart.

We have visited in five sections of HR depart;

Pension Section Promotion and Deputation Section Establishment Section Recruitment Advancement AND GPF (general provident fund)

ACCOUNTS DEPARTMENT

In account department we have given briefing regards KPT’s source of earning through different heads i.e. either by landing, renting or leasing KPT’s state or by providing import and export facilities and services to the vessels and cargo of the clients as well as bill generation both for the govt. and the private parties. The assessment of cash from parties, upgrading, data editing, error identification and correction of entries in the system’s ledgers etc. Also forwarding of bills for audit is taking place here. The department also process and issue cheque against organizational procurements and compensations i.e. payrolls etc.

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Cash and assessment Billing section Estate account Controlling section Government billing

Above all sub heads perform different task according to their nature and different function.

STORES DEPARTMENT

Stores Department is to manage the stores material by provisioning, procuring as well as ensuring the availability of material at Stores Depots to meet specific demands of various users to avoid any uncertainty in Port operational activities. It is responsibility of the Stores department to keep up appropriate record of inventory to manage stores material by provisioning, procuring and storing to maintain functions efficiently & effectively. There are many selections of materials stored chemicals, metals, liquids, gases, spare parts, equipment, stationery items or finished goods, ranging from engineering components to drugs and pharmaceuticals. Each of these items will require a specific type of storage and their handling and preservation methods will vary accordingly. In Karachi Port Trust, Stores department is working under the administrative control of general manager (engineering), headed by manager stores, it consist of the following:

Manager store’s office located at head office. Establishment Section located at the head office. Central store depot (CSD) located at west wharf. Manora store depot (MSD) located at manora Purchase Division (local, ADVT & GFP) located at head office. Central Receipt & inspection section (C.R & I) located at west wharf. Petrol pump and fuel oil barge (FOB) section located at M.I. yard. Central disposal Yard (CDY) section (Yard for keeping old and un-serviceable material)

located at west wharf.

MIS DEPARTMENT

MIS depart deals with the collection, storage, process and excess of data within and outside the entire organization. All the data is receive by the department, where it is upload to different modules and forms of IPOS and other in-house software and programs. Where the data is use for further operations and processes. MIS is divided into three sections which are interrelated and connected to each other’s. All of these are dependent of each other and cannot function without

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each one’s collaboration. Each section has its own deputy manager, who is responsible and accountable for each designated activity of the section. These three sections are;

Network Hardware Software

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ContentsKarachi Port Trust............................................................................................................................1ACKNOWLEDGEMENT...............................................................................................................2Dedication........................................................................................................................................3

MISSION STATEMENT............................................................................................................4Vision...........................................................................................................................................4EXECUTIVE SUMMARY.........................................................................................................5HUMAN RESOURCE DEPARTMENT....................................................................................6ACCOUNTS DEPARTMENT....................................................................................................6STORES DEPARTMENT...........................................................................................................7MIS DEPARTMENT..................................................................................................................7

BRIEF HISTORY..........................................................................................................................12BUILDING....................................................................................................................................13INTRODUCTION.........................................................................................................................13KPT REVENUE............................................................................................................................14KPT PROJECTS............................................................................................................................15ENVIRONMENT, HEALTH AND SAFETY POLICY...............................................................15COMPETITORS............................................................................................................................16ORGANIZATION STRUCTURE.................................................................................................17HIERARCHY CHART OF KPT...................................................................................................18NUMBERS OF EMPLOYEES.....................................................................................................18MAIN OFFICE..............................................................................................................................18DEPARTMENTS..........................................................................................................................19

HR DEPARTMENT..................................................................................................................19ACCOUNTS DEPARTMENT..................................................................................................19STORES DEPARTMENT.........................................................................................................20MIS DEPARTMENT................................................................................................................21

COMMENTS ON ORGANIZATIONAL CHART.......................................................................21HUMAN RESOURCE DEPARTMENT......................................................................................23INTRODUCTION.........................................................................................................................23WORK FLOW OF HRM DEPARTMENT...................................................................................24HRM OPERATIONS....................................................................................................................24

HIERARCHICAL STRUCTURE.............................................................................................25EMPLOYEES IN HR DEPART...............................................................................................26FUNCTIONS OF HR DEPARTMENT....................................................................................26RECRUITMENT.......................................................................................................................26PROCESS OF RECRUITMENT..............................................................................................27PROMOTION & DEPUTATION.............................................................................................27PENSION..................................................................................................................................29CLASSIFICATION OF PENSION...........................................................................................29RELATIVES OF GOVERNMENT SERVANTS.....................................................................30A FAMILY PENSION IS ALLOWED TO...............................................................................30ESTABLISHMENT..................................................................................................................30GPF /ADVANCES....................................................................................................................31

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SUPPORT TO OTHER DEPARTMENTS...................................................................................31SWOT ANALYSIS.......................................................................................................................32RECOMMENDATIONS...............................................................................................................32

CONCLUSION..........................................................................................................................32ACCOUNTS DEPARTMENT......................................................................................................33

INTRODUCTION.....................................................................................................................33OBJECTIVES OF STUDYING THE DEPARTMENT............................................................33NUMBER OF EMPLOYEES OF ACCOUNTS DEPARTMENT...........................................34HIERARCHICAL STRUCTURE.............................................................................................34ESTABLISHMENT OF CONTAINER TERMINAL AT WEST WHARF & EAST WHARF...................................................................................................................................................35THE ACCOUNTING SYSTEM OF THE KPT........................................................................36CASH & ASSESSMENT BRANCH........................................................................................36FUNCTIONS OF CASH AND ASSESSMENT BRANCH.....................................................37INTRODUCTION.....................................................................................................................46FUNCTIONS OF GB................................................................................................................46DETAIL OF CHARGES AND DUES BILLED.......................................................................47SHIP MOVEMENT AND SERVICES.....................................................................................50INTRODUCTION.....................................................................................................................50BASIC DOCUMENTS FOR BILLING AND RECOVERY....................................................51MOBILIZATION OF FUNDS..................................................................................................59GENERATION OF FUNDS.....................................................................................................59SOURCES OF FUNDS/REVENUE GENERATING OPERATIONAL ACTIVITIES...........61 CARGO HANDLING AND CARGO STORAGE ACTIVITIES.....................................61 ALLOCATION OF FUNDS..............................................................................................62A fix amount of money is provided to each division and department yearly. As KPT is an autonomous organization, it raises funds for its operation by its own. And allocate its earning at different proportion to every department of the organization. The proportion depends upon the funds need and requirement of the department. If a department suffers scarcity of fund during the financial year, the scarcity will be eradicated by using other department funds, only if that department is having a surplus amount of funds for its operations.................................62CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS...........................................62BEHAVIOR OF THE KPT IN ALLOCATION OF VARIOUS FUNDS TO DIFFERENT ASSETS.....................................................................................................................................62CRITICAL ANALYSIS OF MANAGEMENT PATTERN.....................................................62SWOT ANALYSIS...................................................................................................................63RECOMMENDATIONS...........................................................................................................64

STORES DEPARTMENT.............................................................................................................65There is a vital role of stores department in operation activities of an organization. In Karachi Port Trust, Stores department is working under the administrative control of general manager (engineering), headed by manager stores, it consist of the following:......................................65CENTRAL STORE DEPOT (CSD)..........................................................................................65MANORA STORE DEPOT (MSD)..........................................................................................65PURCHASE DIVISION (LOCAL, ADVT/GFP).....................................................................66CENTRAL DISPOSAL YARD (CDY)....................................................................................66HIERARCHICAL STRUCTURE.............................................................................................67

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STORES DEPARTMENT OPERATIONS...............................................................................68REQUISITION..........................................................................................................................68

PURCHASE..........................................................................................................................68LOCAL PURCHASE............................................................................................................68ADVT / GFP (IMPORT SECTION).....................................................................................69C.R & I SECTION.................................................................................................................69POLICIES OF PROCUREMENTS.......................................................................................71NUMBER OF EMPLOYEES................................................................................................71MAJOR FUNCTIONS..........................................................................................................71MAIN OBJECTIVES............................................................................................................72SUPPORT TO OTHER DEPARTMENTS...........................................................................72SWOT ANALYSIS...............................................................................................................73RECOMMENDATIONS.......................................................................................................73CONCLUSION......................................................................................................................73

MIS DEPARTMENT....................................................................................................................75INTRODUCTION.....................................................................................................................75PRODUCT LINES....................................................................................................................75OPERATIONS OF MIS DEPARTMENT................................................................................75NUMBER OF EMPLOYEES IN MIS DEPARTMENT..........................................................76STRUCTURE OF MIS DEPARTMENT..................................................................................76FUNCTIONS OF THE MIS DEPARTMENT..........................................................................77FUNCTIONS OF MIS THAT SUPPORT TO OTHER DEPARTMENTS..............................77OBSTACLES OVERCOME.....................................................................................................78SECURITY OF THE DEPARTMENT.....................................................................................78TRAINING................................................................................................................................78TECHNOLOGY USED.............................................................................................................79SYSTEMS USED BY MIS DEPARTMENT...........................................................................80SYSTEMS USE BY DIFFERENT DEPARTMENTS..............................................................80SWOT ANALYSIS OF MIS DEPARTMENT.........................................................................81RECOMMENDATIONS...........................................................................................................82CONCLUSION..........................................................................................................................82

KARACHI PORT TRUST SWOT ANALYSIS...........................................................................83RECOMMENDATIONS...............................................................................................................83

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BRIEF HISTORY

Karachi due to its geographical and strategic location is known as the gateway to Asia. Considered as a safe harbor since time immemorial, Karachi was a small fishing village in early nineteenth century. Historians identify it with its proximity to a place from where a part of Alexander's Army, boarded the Greek Flotilla in 326 B.C.

The first mention of Karachi as a port is found in an Arabic treatise 'Muhit' on navigation relating to the West Coast of India and the Persian Gulf. Written in 1558, this treatise warns the sailors of whirlpools and advises them to seek safety in Karachi Harbor if they found themselves drifting dangerously.

It is also significant to mention that the first Muslim Conqueror of India, Mohammad Bin Qasim, landed at Daibal, in vicinity of Karachi in 711 A.D. Karachi also has the distinction of being the birth place of the founder of Pakistan, Quaid-e-Azam Mohammad Ali Jinnah and was the first capital of Pakistan till 1963. It is now the largest city with a bustling and ever increasing population of over ten million.

By 1852, Karachi was an established city with a population of about 14,000 with a prosperous trade in over-seas markets. However, the existing Port started taking shape in 1854, when the projects of dredging the main navigable channel and the construction of a mole or causeway joining the main harbor with the rest of the city were undertaken. About 5 years later, construction of Manora Breakwater, KeamariGroyne, the Napier Mole Bridge, Native Jetty and the China Creek were started which gave initial shape to the port.

The construction of the wharves started in 1882, and by 1914 the East Wharves and the Napier Mole Boat Wharf had been completed. During the period between 1927 and 1944, the West Wharves of the Port, the lighter age berths and the ship-repairing berths were constructed. Most of these facilities were obsolete by the time Pakistan came into existence in 1947. Since then, the port administration has embarked on extensive development of the port on modern lines.

At the time of independence in 1947, the Port capacity was about 1.5 million tons of dry cargo and 1.0 million tons of P.O.L. products per annum. Karachi Port is now handling over 11.74 million tons of liquid cargo and 25.45 million tons of dry cargo, including 1,213,744 TEUs which constitute about 60% of import/ export of the country.

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BUILDING

KPT Head Office Building has a historical side, in the First World War (i.e. 7th February, 1916 to 6th May, 1919), the building was converted into 500 beds hospital, aimed to serve people. The color of building and material used in the construction was very unique as the color of the building is in a yellowish color that is Sepia, stone based. The curvature of this building is matchless and makes it stand tall amongst many structures. In building’s center curve, there is a large dome placed at the top of it. Domes are the prominent feature of Roman Architectures. Design of KPT Head Office and architect seems to be inspired by Roman Architects. Although, Domes were common feature in Islamic architecture but they were canvassed in different styles. The other classic materials of the buildings are its doors, windows and arches, which are huge in size and in green color.

INTRODUCTION

Karachi Port Trust (KPT) is a Pakistani federal government agency that oversees the operations of the Port of Karachi in Karachi, Sindh, Pakistan. Between 1880 and 1887, the port was administered by the Karachi Harbor Board. The Karachi Port Trust was then established by the Act IV of 1886, effective from 1 April 1887.The Karachi Port is administered by a Board of Trustees, comprising Chairperson and 10 Trustees. The Chairperson is appointed by the Federal Government and is also the Chief Executive of Karachi Port Trust. The remaining 10 Trustees are equally distributed between the public and the private sector. The five public sector trustees are nominated by the Federal Government. The seats for private sector trustees are filled by elected representatives of various private sector organizations. This way all port users find a representation in the Board of Trustees. Stakeholders included Karachi Chamber of Commerce, Karachi Customs Agents Group, Karachi Stevedores Conference (Guarantee) Ltd., Pakistan Ships Agents Association, All Pakistan Shipping Association, and Pakistan Shippers Council. Karachi Port lies on a strategic point along the 600 miles long coastline which stretches from the straits of Hormuz to the border with India. It has an ideal location and well-developed connections with Afghanistan, Central Asia and Western China and well deserves the sobriquet, gateways to the region. KPT has consistently maximized this potential with enlightened policies. Karachi Port has 30 dry cargo berths, 13 berths on West Wharves, 17 berth on East Wharves and 3 liquid cargo berths for POL & NON-POL products.

The port also has two container terminal named as Karachi International Container Terminal (KICT) and Pakistan International Container Terminal (PICT), both are operated by the private sector on BOT basis.

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The port is also equipped with backed up system with good transit and storage areas, with rail and road services for handling, storage and clearance of cargo.

Facilitation of trade at the Karachi Port can be broadly categorized as follows:

Ship handling Discharging / Loading of cargo Storage of cargo Clearance of cargo Security / Safety

KPT REVENUE

KPT generates revenue by many types of operation following are the KPT revenue generator projects.

o It generates revenue by charging wharf age to every ship that moored on port.o Auction of cargo is also a source of income because Auction charges distributed

between custom & KPT with 60% & 40% weight age respectively.

KPT also generates its revenue by its vast spread real estate which is the major source of income. KPT has divided its real estate into eight main locations:

o East Wharfo West Wharfo TPXo M. T. Khan Roado Keamario Manorao Mai Kolachi Roado Bunder Road (M. A. Jinnah Road)

KPT PROJECTS

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KPT installed its many projects to enhance the corporate social responsibility.

o Port Water Jet Fountain - World's Second Tallest Fountain.o Port Grand.o KPT Hospital and Nursing Home.o Port Fire Service.o KPT Underpass.o KPT Flyover at Korangi Road.o Mai Kolachi Road Ending at Submarine Chowk.o KPT Sports Contribution.o Earthquake Relief Operation.o Desalination Plant.o PDWCP (Pakistan deep water container port)

ENVIRONMENT, HEALTH AND SAFETY POLICY

Karachi Port Trust (KPT) is committed to achieving excellence in Environmental, Health and Safety management systems by implementing the following Policy according ISO 14001:2004 and OHSAS 18001:2007 standards.

Environmental, Health and Safety (EHS) management systems have primary importance in all its activities, whether on land, sea or where both interact, to achieve best practices in all its operations and create an injury-free and environmentally responsible workplace.

Policy reflects Top Management’s commitments which are summarized as follows:

Compliance with national and international relevant laws, regulations, statutory and other requirements which KPT subscribes, and monitoring of compliance through periodic assessment.

Prevention of pollution, conservation of natural resources of the harbor and protection of marine life, including mangroves.

Implementation of waste reduction, reusing and recycling strategies, and provision of facilities for collection of oily waste and solid waste from ships in accordance to MARPOL 73/78 convention.

Prevention of injury, ill health, hazard reduction and protection of human health. Continual improvement in EHS management system and performance.

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Compliance with the Port Marine Safety Code and the International Safety Management Code in all Marine Operations.

Effective capacity building system to ensure that all associated with KPT are competent and fully aware to fulfill their EHS responsibilities.

Using internal / external communication channels between management, staff, port users and all stakeholders to ensure co-operation in maintaining, reviewing and improving Environment, Health and Safety.

Integration of EHS considerations in all KPT projects /activities.

COMPETITORS

KPT has 2 competitors:

o Port Muhammad Bin Qasimo Gawadar Port.

ORGANIZATION STRUCTURE

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KPT is comprises of six major Divisions under which several department work integrally to make a flow of information among the KPT.

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KPT

Administration(division)

Human Resource

Department

IR & W Department

Organizational Development Department

Hospital Department

Engineering (division)

Stores Department

MIS Department

M & E Department

Central Fire Station

Department

Finance (division)

Finance Department

Audit Department

Accounts Department

Operation (division)

Traffic Department

Port Department

MPC Department

Deputy Conservative Department

Civil work (division)

Engineering department

(civil)

Estate Department

Planning & Development

(division)

HIERARCHY CHART OF KPT

NUMBERS OF EMPLOYEES

KPT has 3000 permanent employees and 2500 on daily wages. Highest ranking officers fall into Grade 22 while minimum ranking fall into Grade 4.

MAIN OFFICE

KPT Head Office Karachi

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DEPARTMENTS

1) HR Department.2) Accounts Department.3) Stores Department.4) MIS Department.

HR DEPARTMENT

Human resources are a major component of any business. Respect and trust of each other Promote and recruit the best qualified people while recognizing and encouraging the value of diversity in the workplace Provide competitive salary and benefit packages to attract the best candidates and retain our employees. The human resource depart of KPT is working to fulfill the human need within the organization via job rotations, deputations, hiring and recruitment. HR deals with every aspect of human resource from recruitment till retirement & in fact even after retirement i.e. pension, pensioner and pension holders. HR department helps in wisest possible use of people with respect to the strategic need of the organization. The promotion within the organization is process in HR depart. HR depart has a single manager and deputy manager, who is accountable for all the activities and processes of the entire depart.

Following are the sections of Human Resources Department in KPT.

Recruitment Transfer / Posting Promotion / Deputation Pension / Gratuity Establishment matters GPF / Advances Government Correspondence Enquiry Cell Litigation

ACCOUNTS DEPARTMENT

Account Department deals with KPT’s source of earning through different heads i.e. either by landing, renting or leasing KPT’s state or by providing import and export facilities and services to the vessels and cargo of the clients as well as bill generation both for the govt. and the private parties. The assessment of cash from parties, upgrading, data editing, error identification and

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correction of entries in the system’s ledgers etc. Also forwarding of bills for audit is being done. The department also process and issue cheque against organizational procurements and compensations i.e. payrolls etc.

Following are the major sections of KPT Accounts Department.

Cash and assessment Billing section Estate account Controlling section Government billing

STORES DEPARTMENT

Stores Department is to manage the stores material by provisioning, procuring as well as ensuring the availability of material at Stores Depots to meet specific demands of various users to avoid any uncertainty in Port operational activities. It is responsibility of the Stores department to keep up appropriate record of inventory to manage stores material by provisioning, procuring and storing to maintain functions efficiently & effectively. There are many selections of materials stored chemicals, metals, liquids, gases, spare parts, equipment, stationery items or finished goods, ranging from engineering components to drugs and pharmaceuticals. Each of these items will require a specific type of storage and their handling and preservation methods will vary accordingly.

In Karachi Port Trust, Stores department is working under the administrative control of general manager (engineering), headed by manager stores, it consist of the following:

Manager store’s office located at head office. Establishment Section located at the head office. Central store depot (CSD) located at west wharf. Manora store depot (MSD) located at manora Purchase Division (local, ADVT & GFP) located at head office. Central Receipt & inspection section (C.R & I) located at west wharf. Petrol pump and fuel oil barge (FOB) section located at M.I. yard. Central disposal Yard (CDY) section (Yard for keeping old and un-serviceable

material) located at west wharf.

MIS DEPARTMENT

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Management information system, or MIS, broadly refers to a computer-based system that provides managers with the tools to organize evaluate and efficiently manage departments within an organization. KPT has its all operation automated with help of MIS. They have their own department to enhance the operation of port. The Management Information System Department (MIS department) becomes the first department in Karachi Port Trust to obtain “ISO 9001:2008” The certification covers software designing, hardware and network support services of information and technologies areas/functions of the MIS Department. This certification has made the KPT the first in ports and shipping sector to have an international quality management certification and reflects on the professionalism as well as procedural formalities at par with international standards. MIS department is reporting to Engineering Division.

Operations are supported by MIS department of KPT & controlled by Different departments e.g. Port, Traffic, and CM &EE etc.

COMMENTS ON ORGANIZATIONAL CHART

An organization's structure dictates who is in a position of authority, how work is divided and how employees are assigned duties. The structure of the company depends in part of style and what to accomplish. KPT is having Vertical hierarchy.

A structure with power emanating from the top down with a well-defined chain of command and the person at the top of the organizational chart has the most power. Employees report to the person directly above them in the organizational structure. Each person is responsible for a specific area or set of duties. Although Vertical organizations are efficient and can make decisions quickly, because responsibility lies with people highest in the chain of command as well as Employees have clearly defined duties and each position involves specialized tasks, with little need to learn new tasks and skills. But on other hand Employees at the bottom of a vertical structure may feel less valued than those higher up in the chain.

Culture of politics, which places heavy emphasis on pleasing the boss.Greater time consumption for top management decisions to filter down through multiple layers, reducing the organization's ability to react quickly to a rapidly changing business climate. Because of the centralized control of power, weak leadership at the top can hamper the effectiveness of the entire organization. That’s why KPT should transform its structure into a horizontal hierarchy. Because in horizontal structure Employees may attain greater satisfaction due to greater freedom and autonomy.

Similarly the use of cross-function teams can also lead to high levels of cooperation throughout the organization. The heavy emphasis on innovation can lead to ideas that keep the organization ahead of the competition. The absence of multiple structural layers provides streamlined communication and reporting processes, making the organization more nimble and adaptable to change.

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people feel more involved and can take on more responsibility greater communication better team spirit less bureaucracy and easier decision making Lower costs.

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HUMAN RESOURCE DEPARTMENT

(One week from 22-Dec-2015 to 28-Dec-2015)

INTRODUCTION

Human resources are a major component of any business. Respect and trust of each other Promote and recruit the best qualified people while recognizing and encouraging the value of diversity in the workplace Provide competitive salary and benefit packages to attract the best candidates and retain our employees. The human resource depart of KPT is working to fulfill the human need within the organization via job rotations, deputations, hiring and recruitment. HR deals with every aspect of human resource from recruitment till retirement & in fact even after retirement i.e. pension, pensioner and pension holders. HR department helps in wisest possible use of people with respect to the strategic need of the organization. The promotion within the organization is process in HR depart. HR depart has a single manager and deputy manager, who is accountable for all the activities and processes of the entire depart.

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WORK FLOW OF HRM DEPARTMENT

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MANAGEMENT

Deputy Head of HR department and his employees controls and manages the employees Record of whole KPT from their selection to retirement.

ORGANIZATION

It provides the skilled and productive employees to KPT by hiring the right person for the right job.

Technology

Many system software are being used by HR department of KPT.

Works on Different modules of IPOS(integrated port operations system)

HRM OPERATIONS

The department of Human Resource Management (HRM) supports the KPT and its employees by providing effective and efficient human resource programs and services that attract, develop, retain high performance workforce. HRM establishes the policies, practices and strategies.

Make employees profile Hire right person for right place Make annual confidential report Promotion & deputation Give employees’ pension or gratuity

HIERARCHICAL STRUCTURE

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GENERAL MANAGER(ADMIN)

DEPUTY MANAGER HR

DEPUTY MANAGER HR-I

DEPUTY MANAGER HR-II

MANAGER HR

EMPLOYEES IN HR DEPART

In HR department there are total 63 employees are working.

FUNCTIONS OF HR DEPARTMENT

Human resources are a major component of any business. HR deals with every aspect of human resource from recruitment till retirement. HR department helps in wisest possible use of people with respect to the strategic need of the organization.

Following are the major functions of Human Resources Department in KPT perform:

Recruitment Transfer / Posting Promotion / Deputation Pension / Gratuity Establishment matters GPF / Advances Government Correspondence Enquiry Cell Litigation

RECRUITMENT

Recruitment is the major function of HR department. Recruitments in KPT are deal by this department. Recruitment begins with a clear statement of objectives, based on types of qualification, knowledge, skills, abilities and other characteristics that are required. Through recruitment HR department try to identify and select the most suitable and right person on merit. Recruitment section posts an advertisement in Newspaper after that resumes are collected in a huge amount after which evaluation of resumes are done on the basis of requirement of position. From collecting resumes to appointment of candidates all the processes are handled by this department and this process takes 5 to 6 months or more.

Following are the major work performed by Recruitment section of HR department:

Recruitment of employees ( Regular, Contract, Deputation & Casual Employees ) Deputation Cases of ALL Officers/ Employees/ Marines Preparation of Advertisements

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Compiling of application received for different posts Sending Call Letters Sending selected candidates for Medical Examination Issuing Appointments Letter Maintaining record of WafaqiMohtasib's cases & Sons Quota Initiating Proposals for Re-designation Cases Maintaining Seniority list of all grades

PROCESS OF RECRUITMENT

This whole process takes minimum six months, as the received amount of CVs is huge & it takes time to choose the criteria CVs.

PROMOTION & DEPUTATION

Promotions / career development & success can also be called as occupational advancement which is very important for human resources of any organization. In KPT promotion is given to employees on Seniority basis.

Following is the procedure of promotion:

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Concer department write letterto HR depart

for vacant position to be filled

HR depart publish Addvertise of vacant

position of concern dpt.

HR dpt. recieve CVs & select those candidates who meet their concern

position criteria

Then interview is conducted of the

selected candidates

Interview shortened the list of selected

candidates & verify their documents and

Medical Test

After verification, appointments letter is

send to selected candidates

Step 1

Concern department send letter for the vacant seat in department to HR promotion along which a list of senior position working employees in concern department is attached.

Signature Required: Concern Department Manager

Step 2

HR department list out the right person to get promoted & send back letter to concern department.

Signature Required: Deputy Manager (HR) –I

Step 3

Concern Department provide the conduct sheet & ACR’s of the considered employees to the HR depart. Conduct sheet includes the designation, department name & pay Scale of elected employees to get promoted on seniority basis.

Signature Required: Concern department Manager

Step 4

Then a note is issued to inform the elected employees to be called for interview on the date provided by HR department.

Signature Required: Manager (HR) & General Manager (A)

Step 5

Port of Central Recruitment & promotion committee sends minutes of meeting that would held on the provided date to the HR department & concern Dept.

Signature Required: Deputy Manager (HR)-I

Step 6

After the meeting, note portion is issued to recommend the selected candidates to the concern Dept.

Signature Required:

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Concern Department Manager Manager (HR) General Manager (Admin)

Step 7

Then Letter is sent to selected employees to inform about their Promotion on Seniority basis.

Signature Required: Deputy Manager (HR)

PENSION

Pension is the amount of money given to those employees and officers who have been retired or resigned after giving a specific numbers of years of services to the KPT with a specific rate. KPT is liable to give pension to the employees and officers after retirement and resignation. If employee or an officer dies then the amount of pension will be given to one’s wife, sister (unmarried), daughter (unmarried).

Following are the major functions performed by pension section:

Cases of retiring, deceased and family pension. Revision of pension after every two years. Golden Hand Shake (GHS). Dealing with enquiry cases of pension and GHS.

CLASSIFICATION OF PENSION

Pensions are divided in to four classes:

A. Compensation Pension: if an officer is selected for discharge owing to the abolition of a permanent post, he shall, unless he appointed to another post the conditions of which are deemed by authority competent to discharge him to be least equal of his own, have the option.

B. Invalid Pension: an invalid pension is awarded, on his retirement from the public service, to an officer who by bodily or mental infirmity is permanently incapacitated for the public service, or for the particular branch of it to which he belongs.

C. Superannuation Pension: A Superannuation pension is granted to an officer entitled or competed, by rule, to retire at a particular age.

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D. Retiring Pension: A retiring pension is also granted to an officer who is required by government to retire completing twenty five years qualifying service or more.

RELATIVES OF GOVERNMENT SERVANTS

The ‘Family’ for the purpose of payment death-cum-retirement gratuity will include the following relatives of the government servant:

Wife or Wives, in case of male Government servant Husband, in case of female government servant Children of government servant Widow or widows and children of a deceased of the government servant.

A FAMILY PENSION IS ALLOWED TO

Widow of the deceased for life, if the deceased is a male government servant. If the government servant died so pension will distribute like this:

The number of his surviving widows & children of government servant does not exceed 4; the pension shall be divided equally among the surviving widows for life and children.

The number of surviving widows and children together is more than four, the pension shall be divided in the following manner, via each surviving widow shall get ¼ of the pension and the balance if any shall be divided equally among the surviving children.

NOTE: The term “children” excluding sons above the age of 21 years, married daughters and daughters above the age of 21 years.

ESTABLISHMENT

This section maintains the file of every employee from his appointment to retirement. It includes allocations of personal numbers through which every employee can be inspected on privacy basis, Pay sheets of HR department employees and officers, process of KPT ID cards, Medical cards, maintaining up to date schedule of staff and etc.

The establishment matter include following:

Allocation of Personal No.

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PIS data Entry Master Pickup Forms Academic documents, NIC, Matric Certificate, Date of Birth Pay & Allowances Bonuses Usual increments (in place of annual increments) Processing of Leave & maintenance of leave account Processing of advances e.g. Provident funds, Motor Cycle Advances, Bank Loan Processing of KPT ID cards & Medical Cards Preparation of service certificate Dealing all disciplinary matters, Grievances pertaining to establishment and providing

Para wise comments Handling all appeals submitted by employees officers and their replies Maintain up to date schedule of staff

GPF /ADVANCES

GPF /Advances section link HR with accounts Department .they generates case files and take it to accounts department for approval.

GPF Advances cases & reconciliation of GPF reports Loan/Advances like House Building, Motor Car, Marriage, Motor Cycle Special (18%

interest) & Motor Cycle Normal (13% interest) Cycle Advance &Car loan for officers Redemption Cases Provision of Schedules for audit Insurance Premium, Insurance Maturity Claims & Insurance Re-assignment

SUPPORT TO OTHER DEPARTMENTS

HR depart plays a vital role in any organization as this depart work is to hire the right person for the right place. KPT is huge organization need skilled people so HR is like a back bone for KPT, they hires skilled people and fill the position with skilled employees. They also maintain the record of all employees working in KPT and also give needy employees some facilities like education allowances, marriage allowances etc.

SWOT ANALYSIS

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Strength Using new software to save

employees data Inter department harmony

Weakness Lack of trained faculty Slowness to change Delay in selection process

Opportunities Gives training section to

employees Introduce information system

to convenient CVs reading

Threats Unsatisfied employees Rigid policies Less chances of promotion Seniority base promotion

RECOMMENDATIONS

HR depart have to implement CVs reader software, this will convenient them to read CVs and save their time.

HR depart have to implement scorecard to analyze employees daily and monthly performance.

Internal marketing should have to be implemented

CONCLUSION

HR Department is considered to be the backbone of any organization, KPT is having developed and advanced HR department which helps KPT to recruit the right person for the right position. HR department records data of every single employee from his appointment to the retirement/resignation. All the promotions and deputation occurs on seniority basis. HR playing a vital role in hiring employees for KPT as it is also responsible for maintaining records of pension’s holders.

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ACCOUNTS DEPARTMENT(One week from 29-Dec-2015 to 04-Jan-2016)

INTRODUCTION

The Karachi Port Trust is one of the largest Ports in Pakistan, as it enjoys a unique position in respect of Mercantile Shipping infrastructure. It was established under the KPT Act, 1886.The principal activity of the KPT is to provide port related services at the Port of Karachi and renting out the properties acquired under the Act. The Income generated from the operations is classified into four broad categories according to the nature of activities.

These are as follows:

Cargo Handling Ship movement Cargo Storage Property Management

Apart from the above, a significant portion of revenue is also derived from interest on investments in Government Securities and deposits with the Banks and other financial institutions and other miscellaneous activities classified under Miscellaneous Income.

The KPT is collecting a substantial amount from renting out & lease hold property vested and acquired under the Act. This income is being accounted for by the “Estate Accounting Unit” of C.A.O Department in association with Estate Department.

OBJECTIVES OF STUDYING THE DEPARTMENT

The objective to study account department is to experience the implementation of theoretical laws, processes and phenomena of accounting in an organization. The cash flows, ledgers preparation, etc. recording of data, technology and information system uses in the organization to operate, facilitate and regulate the accounting processes.

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NUMBER OF EMPLOYEES OF ACCOUNTS DEPARTMENT

The workforce of account department is diverse with appropriate ratio of; male and female staff, aged and young employees, competitive and experienced employees. There are 98 numbers of employees working in account department, including officers, clerks and peons.

HIERARCHICAL STRUCTURE

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FINANCE AND ACCOUNTING OPERATIONS

The activities in respect of Cargo Handling and Cargo Storage are being performed by the Traffic Department.

The activities regarding Ship movement and ancillary services are being undertaken by the Port Department.

The activities in respect of property management through leasing and renting out are carried out by the Estate Department.

The billing process in respect of ship movement activities are being carried out jointly by Port & Accounts Department.

Necessary qualitative data required for preparing of bills via; pilot report, tug utilization report. Berthing information, or any other service rendered to the shipper is maintained by the Port Department through computerized software whereas these are materialized by the Chief Accounts Officer by issuing “No Demand Certificate” after making recoveries of all the wet dues from the shipping agent.

The major billing activity in respect of Wharf age and Storage which is part of cargo handling activity i.e. has been out sourced and being perform in collaboration with a private Firm..

The billing of ancillary services, related to the cargo handling and cargo storage, are continue to perform by the KPT own staff.

OUTSOURCING WHARFAGE AND STORAGE BILLING ACTIVITIES

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Chairman

Chief Account Officer

Assistant Account Officer

For the purpose of facilitation to the port user the function of Revenue billing in respect of Wharf age and Storage, is outsourced and an e-Wharf age Data Entry Centre has been established within the premises of KPT.

For this purpose a services rendering firm has been engaged, under an agreement, to make necessary arrangement with its own resources on payment of a certain amount recovered from the port users. All the facilities from billing to the payment are provided less than one roof.

ESTABLISHMENT OF CONTAINER TERMINAL AT WEST WHARF & EAST WHARF

The KPT has a leasing contract on “build, operate and transfer” (BOT) basis, with International Container Operators, M/s KICT & PICT, in a manner which reflects close cooperation and mutual understanding between the public and private sectors with a view to provide modern, efficient, competitive and non-discriminatory container handling services at Karachi Port for shipping lines, shippers, consignees and other port users in a manner consistent with the requirement of the shipping trade, government priorities and other port operations.

THE ACCOUNTING SYSTEM OF THE KPT

The processes and procedures used by KPT’s management to exercise financial control and accountability forms the financial system. These measures include recording, verification and timely reporting of transactions that affect revenues, expenditures, assets, and liabilities. As stated earlier the cargo handling activities are administered by the Traffic Department and the activities in respect of ship movement & services are being managed by the Port Department. Which were computerized in the year 2003, since then all functional activities and the revenue arises there from, is being perform through the computer oriented modules.

The responsibility of C.A.O is to manage the financial matter including realization of dues accrued from the operational and non-operational activities of different nature.

The finance system of KPT is divided into many sections; some of them are described below:

Cash & Assessment Branch Billing section Estate account Controlling section Government billing General section

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CASH & ASSESSMENT BRANCH

The Cash & Assessment Branch (C&A Branch) is the part of C.A.O’s Department. It will be in the immediate charge of an officer designated as the Assistant Accounts Officer. The C&A Branch is responsible to deal with all the financial matters relate to operating and non-operating revenue realized according to KPT Scale of Charges. The function regarding assessment of Wharf age, Storage and Billing thereof has been outsourced to a private firm. The function is regulated through a S.O.P. in this regard. On the other hand, with the introduction of common user container berth the responsibility of collecting KPT dues, has duly been assigned to Terminal Operators. Thus mode of collecting the KPT dues in respect of container operation has entirely changed.

The introduction of computer oriented modules and privatization of certain revenue activities has entirely changed the character, assigned previously, to C&A Branch of C.A.O Department. The responsibilities in respect of billing and assessment of Wharf age and Storage, shifted to the private firm, even then the billing in respect of other activities are still lying with Cash and Assessment Branch.

FUNCTIONS OF CASH AND ASSESSMENT BRANCH

Following are the functions being performed by the Cash & Assessment Branch at present:

Preparation of necessary bills in respect of the charges arising out from the Ship Movement activities due to, the Pakistan Navy, Karachi Shipyard and Maritime Security Agency on the basis of information received from the Port Department in respect of services rendered. Preparing bills in respect of hiring of equipment via; Floating crane, mobile crane or any other equipment.

Preparation of bills for the work performed at night and on Sundays and holidays on the basis of statement received from Traffic department /Port Department.

Preparation of bills in respect of hiring the Barges relating to Explosives/Petrol/Dangerous Goods, and receipts of water supplied to shipping from wharves or through self-propelled -water barges, by the Port Department.

Issue of “No Demand Certificate” .where due, to the vessels and craft prior to their being permitted to leave the Karachi Port.

Issue of Duplicate copies of Challans of Port dues, Cargo fees, Wharf age or other fees, if required by the parties concerned.

Maintenance of various types of registers, ledger, adjustment books, accounts, etc; in respect of the bills, prepared by the branch, either for departmental adjustments or for recovery from outside parties, as well as those pertaining to the recoveries/adjustments effected by the K.P.T. branch of the nominated Bank on behalf of the Port Trust, including reconciliation of the necessary accounts in this connection with the Bank.

Scrutiny of claims for refund is performing by the traffic department. But the payment is being arranged by the Cash & Assessment Branch.

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In order to perform the functions as stated above efficiently and smoothly, the work has been assigned to different section or the Branch is sub-divided into following sections according to the assigned function, mentioned below:

Government Bills Wharf age & Storage Steamer Refund (D & R ) Miscellaneous

The function of C&A Branch is being carried out with the help of the sections mentioned above. Keeping in view the special nature of transaction and recoveries an A.A.O, has been assigned the duty to maintain all the relevant billing record of Government Departments and Agencies, making necessary efforts to realize the bills accounted for in respect of services rendered by KPT. Following are some important information’s conveyed to all the user of the I-POS system through their interfaces.

Bill of lading and date IGM Index No. Gross & Net Weight Volume Consignment Consigner Consignee Shipping agent Commodity Loading Port Commodity Containers, Type & Status

The information as mentioned above is very important as the Charges in respect of Wharf age and Storage cannot be calculated and ascertained properly.

K.P.T Tariff

The KPT scale of tolls, rates, dues, and charges lays down the KPT Tariff framed under Sections 43, 43A and 43B (Annexure-2) of KPT Act,1886 and Sections 33,34 and 35 (Annexure-3) of the Port Act, 1908 and all other statutes and instructions pertaining to frame of all such charges.

WHARFAGE AND STORAGE

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1. WHARFAGEThe statutory dues which the Importer or his Clearing Agents or Shipper or his Forwarding Agent is liable to pay on the goods imported or shipped. The charges are levied against the merchandise for the use of the wharf or other facilities that have been provided by the Port Authorities in landing or shipping the goods. Although the KPT has established a Container Terminal in collaboration with private sector organizations named KICT & PICT. These directly collect wharfage and storages charges from the consignee on behalf of KPT.

CLASSIFICATION

Wharfage is classified as under:

Import Wharfage Export Wharfage

MODES OF PAYMENT

Following are the modes of payment, through which the KPT allow the user of Port to pay dues in respect of Wharfage and Storage:

1. Paid Pass 2. Let Pass3. Adjustment from D&R A/c

ASSESSMENT AND BILLING OF WHARFAGE/STORAGE AT THE DATA ENTRY CENTER

1. Paid Pass Wharfage EntriesPrivate Firms are authorized to prepare bills in respect of Wharfage and Storage in accordance with Schedule of Rates and Charges (KPT Tariff), representing KPT thereby. The consignee/or his agent will be required to submit the Photocopies of the following documents to the Terminal Operator Personnel at one of the Receipt counter, according to the nature of transaction specific to the purpose:

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(a) Completed Custom Bill of Entry/Goods Declaration: a Custom House Document prepared by an Importer or his Clearing Agent on the basis of which the amount of import duty payable is assessed by the Customs.

(b) Bill of Lading: a document signed by the master or by a person authorized by him and confirming the shipment of the goods described in the document for carriage to a port named and on terms embodied for carriage to the right holder of the document.

(c) Invoice (if deemed to be necessary): a Note showing quantity, description (quality, marks etc.), price and the total value of the goods shipped. It is sent by the exporter to the importing merchant on dispatch of the goods.

(d) Packing List (if deemed to be necessary): the detailed description of goods mentioning thereby the weight, measurement and volume etc.

(e) DIP Statement: In case of wharfage entry for liquid product the company issues a DIP Statement showing the quantity chargeable for the purpose of preparation of Import wharfage.

(f) Certificate from the Embassy: In case of Embassy Cargo assessment based on weight or measurement and these particulars are not shown in Invoices or Custom Bill of Entry or these specifications varies, a certificate from Embassy certifying the weight and measurement of the packages imported or exported by them can be accepted as bonafied Invoice. If such certificate is not produced the matter will be resorted by physical verification of goods.

On submission of above mentioned documents the Terminal Operators personnel will issue a token of receipt.

The first copy of the token is to be issued to agent, duly stamped mentioning thereby, the delivery window number. I.e. separate color trays to maintain proper control and sequencing of wharfages to reduce the chances of the wharfages getting mixed up.

The second copy of the token is also to be stamped mentioning the same number as at first copy and attached with the documents for identification.

Third copy of the token shall be retained by the operator for record.After ensuring due compliance of all the documents mentioned above the Operators personnel will check all the particulars of the documents from the Cargo Book, already made available electronically by the Manager MIS.

For this purpose he shall:

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Enter the Data from the aforementioned documents into the computer system through the e-Wharfage software provided by KPT.

Generates Bill of Entry (Wharfage Challan). Then the bill is checked by other personnel; the supervisor, before it is delivered to the

consignee/agent for payment at the Bank.

WHARFAGE ENTRY/CHALLAN/BILL

A prime document levying the Wharfage Charges against the Merchandise imported or shipped at the Port, prepared in a prescribed format with the help of documents provided by the consignee.

The following particulars of the consignment are covered in the Wharfage Entry:

1. Number of packages.2. Marks and Number3. Description 4. Contents 5. Weight and /or measurement6. Name of the ship 7. I.G.M. No. & Date.8. Rate at which Wharfage is chargeable. 9. Total amount of wharfage charges.

A set having quadruplicate paper (white, green, pink and yellow paper) attached with the documents already furnished by the consignee or his agent.

The data entry operator shall forward the wharfage entry to the prescribed delivery window operator within the stipulated time period.

The agent shall take delivery of set of wharfage Entry in due course and will approach the Bank for payment, (Note: Prior making payment, the agent can request changes, free of cost, over any mistake made in the wharfage by the operator).

The Bank shall receive payment and endorse each paper of the set with stamp in confirmation of payment made, date and time.

LET PASS WHARFAGE ENTRIES

This type of Wharfage Entries will be dealt with, and processed on the same lines, (except the mode of payment), as described above, with the only difference that such Entries shall be embossed by means of a rubber stamp on the audited copies of the Wharfage. The amount recorded on the audited Wharfage Entries will debited by the Bank against the personal accounts of the respective parties maintained with them.

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DAILY RECONCILIATION WITH THE BANK

For the purpose of necessary control over the collection made by the Bank through different modes of payments, should be verified from the bills duly stamped by the Bank as paid. This is a two end meeting process carried out by the C&A Branch at the close of each day.

The Habib Bank Ltd and National Bank of Pakistan, KPT Branch are the only Authorize bankers to collect the dues, charges and all type of receipt on behalf of KPT. Both the bakers by the end of the day will furnish a summary statement of collections made by them during a particular day.

This statement shall be furnished to the Head Cashier KPT along with the Bank Statement. The different section of C&A Branch shall prepare statements from the paid bills retain with them, and forward a summary statement to the Head Cashier KPT. It is the duty of the head cashier to make sure that the statement of collection received from the Bank is in agreement with the Statement provided by the different section of the C&A Branch and to check any difference if arises there from. Banks will furnish a summary statement of collection made during a particular day on account of different modes of payment mentioned below:

Clearing: It includes the receipt of dues made through cheques, pay orders and other negotiable instruments.

P.P.Cash: Paid Pass Cash is the term used for the charges paid at the counter of the Bank to credit the KPT Accounts.

Let Pass: The port users have been provided the facility to open a non-checking replenish able Bank Account with Habib Bank Ltd K.P.T. Branch, wherefrom the KPT dues owed to them could be adjusted accordingly.

All the bills in respect of Wharfage and Storage paid through any of the mode mentioned above are then forwarded to the Wharfage and Storage Section of C.A.O’s Department. These paid bills are verified from the “Income Report” of IPOs module, the report provides the following details:

INCOME REPORT

Bill ID Party Name Payment mode

Head of A/c

Total

Hence the data made available by the Income Report is got reconciled from the payment mode wise details of collection made by the Bank. If the information’s provided by the Bank and the payment mode wise total is not agreed with each other the data is checked from the paid bills made available to them by the audit Department.

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GOODS FREE OF WHARFAGE/STORAGE CHARGES

As per the Tariff of the KPT following good are free of Wharfage Charges:

1. Un-manifested passenger baggage on passenger vessel.2. Containers landed on Wharf temporarily for convenience of ship operations and

reshipped on same vessel with the prior permission of Wharf Traffic Inspector.3. Sweeping collected by the Port Trust or received from the ship. The remnants and

spilled out contents of the manifested cargo will be treated as sweeping4. Damaged goods removed for destruction. 5. Stores from city for the Military, Telegraph and Port Trust Departments at

Manora.6. Stores and equipment from city including liquid fuel for bunkers required for

P.N.Ships own consumption.7. Goods from city for shopkeepers at Manora, Baba, and Bhit.8. Provisions and construction materials weighing upto two tons from city for

residents of Manora, Baba and Bhit.9. Goods from city taken by peddlers/vendors for sale on ships.10. Stores from city for the bonafide use of lighterage companies. 11. Workmen’s tools and appliances from city for repair work on board ships.12. Ship’s gear and appliances landed for repairs in quantities (provided a certificate

is produced from Master/Chief Officer of the vessel).13. Material taken on board ships for repair work.14. Motor cars, motor cycles, and ordinary cycles, which are the bonafide property of

officers of vessels in port, which are landed and shipped for private use during a vessel’s stay in port.

15. Local fisherman’s tackles and stores.16. Mortal remains. 17. Mail bags. 18. Import/Export goods removed for destruction.

Following goods are free of storage charges:

Damaged goods removed for destruction. Passenger’s un-manifested baggage detained by Customs for purposes beyond the

passenger’s control.

2. STORAGEStorage will accrue on all goods stored at all landing places, except KICT & PICT or any other place so notified by the Board, remaining un-cleared after the expiry of free period counting from the demurrage date. The procedure for the payment of Wharfage/Storage charges the same with regard to the payment. The Storage is not a mandatory rather a conditional payment. It is levied only when the goods are not removed in a specific free period allowed by the Authorities of the KPT and defined in the Schedule of Charges.

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LANDING DATE

This is the date of completion of discharging of vessel for all commodities except Jute. For jute this is the date on which the Bulk (more than 50 percent) of the manifested cargo is landed. In case of holiday the landing date would be the next working day. If discharging is discontinued/suspended for any reason then more than one landing date may be fixed for the same vessel by the respective Dy. Traffic Manager.

The landing date will be notified on the Discharging Memo by the In-charge Special Document Section (SDM) duly countersigned by the concerned ATM/DTM.

DEMURRAGE DATE

The demurrage date of a vessel is the day, which falls after expiry of the free period.

DURATION OF FREE PERIOD FOR IMPORT CARGO (WITH REFERENCE TO SCHEDULE OF CHARGES)

The duration of free period for Import Cargo would be as under excluding holidays:

1. All dangerous cargo except ‘f’ below: 3 days2. All other cargo except ‘c’ , ‘d’ , ‘e’ , below

Including Export bulk cargo under Clause 0407 Item ‘d’: 7 days3. All cargo requiring fumigation except jute: 10 days4. All transshipment cargo: 30 days5. In-transit cargo except dangerous cargo: 14 days6. Goods Auctioned and dangerous LCL cargo: 5 days

Purchaser of the sweeping goods, auctioned under section 50 of KPT Act, 1886, will be allowed five clear working days after the date the auction is completed within which they are to remove their goods purchased at the sale. If the goods are not removed with five days, storage charges will be levied as per Clause 0406 of the Port Tariff.

Purchaser of the goods transferred to Customs by order of the Board and auctioned by Customs, will allowed five clear working days after the delivery order by Customs or as extended by Customs and duly scrutinized by Traffic Manager. If the goods are not removed within five days, storage charges will be levied as per Clause 0406 of the Port Tariff.

SUPPLEMENTARY NOTES REGARDING CARGO STORAGE WITH REFERENCE TO KPT TARIFF

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1. Storage Charges will be levied on the tonnage/footage on which wharfage has been levied.

2. The landing date will be notified on the Discharging Memo by the In-charge Special Document Section of Traffic Department and duly countersigned by the concerned ATM/DTM.

3. Terminal Operators are bound to de-stuff LCL and FCL (CFS container(s) within four working days and DG Container(s) within one working day from the landing date failing which KPT storage charges for the delayed period will be recovered from Let Pass Deposit Account of the Concerned Shipping Agent/Terminal Operator in case of non-recovery from the consignee.

4. In case where part consignment is landed (See Clause 0404) the next landing date will be applied for levying storage charges.

5. If the clearance of a consignment is delayed due to a fault on the part of KPT then DTM may, after due scrutiny, issue a free slip inclusive of holidays, for the period of delay attributable to KPT.

6. For sweeping goods five clear working days shall be allowed.7. For goods transfer to customs by order of the Board will be allowed five clear

working days.8. Where a part of the consignment is confiscated by Customs, the KPT storage charges

will be payable on the released quantity instead of manifested quantity.9. The containers detained by the Shipping Agents/Terminal Operators/Consignees and

kept in Container Yards after the expiry of the stipulated free period will be subjected to the payment of the KPT storage charges prescribed under Clause 0406 of the Schedule of Charges.

10. The sheds earmarked for cleared in-transit cargo are only to be used for storing transit shed cargo and not for any other type of cargo.

11. In case of party delivery of FCL container storage charges will be levied on Weight x 2 of the balance cargo.

12. In case dangerous goods are stuffed in FCL container(s) along with the general cargo, free period will be provided separately as per Clause 0405 of Schedule of Charges and the storage charges will distributed in ratio of their weight as per Clause 0406Column II of Schedule of Charges.

13. In case CY/CY and CFS/CY containers are not cleared by the consignee within 30 days from the landing date, the Shipping Agent/Terminal Operator will be at liberty to de-stuff the container(s). Consignee will be responsible for payment of storage charges as per Clause 0406 Column II of the Schedule of Charges.

14. Unless otherwise specified dangerous and hazardous cargo will only be allowed to be stored in DG shed.

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15. The shipping Agent/Terminal Operators are to shift the dangerous cargo containers to the DG shed upon discharging from the vessel, failing which storage charges for the delayed period will be recovered from the respective Shipping Agent/Terminal Operator along with the penal action as prescribed in Sections 6(a) and 62 of KPT Manual Part III.

16. Export Bulk cargo passed-in under Clause 0407 Item ‘d’ is to be differentiated from regular export cargo passed-in under Clause 0407 (a) , of Schedule of charges , since storage charges will be levied on export bulk cargo passed-in under clause 0407 Item ‘d’.

17. Storage charges levied as per clause 0406 item ‘e’ shall be paid in advance, for the period requested and allowed. This period would be extendable by the Traffic Manager only on advance payment of charges for the period for which the extension has been requested and allowed. Fifteen days after the expiry of such period(s) the Board shall have the power to auction the goods after giving a notice to the concerned party ten days prior to the auction. If such cargo is not shipped, it would only be allowed to pass out after payment of wharfage and storage charges from the date of Passing in.

18. Storage charges levied as per clause 0406 Item ‘e’ shall be paid in advance, for the period requested and allowed. This period will be extendable by the Traffic Manager only on advance payment of charges for the period for which the extension has been requested and allowed. Fifteen days after the expiry of such period (s) the Board shall have the power to auction the goods after giving a notice to the concerned party ten days prior to the auction.

19. Confiscated import/export goods may be removed by Customs subject to an undertaking that KPT share in the sale proceeds will be paid as per rules in vogue.

PROCEDURE FOR PAYMENT OF STORAGE CHARGES

The billing function of Wharfage and Storage has been outsourced to a private firm. The billing is carried out by the Firm and the dues are collected by the Bank nominated by the KPT. The function is being supervised and controlled by the C.A.O KPT.

The procedure for the payment of Storage charges, Adjustment and recording the transaction will remain the same as the wharfage.

GOVERNMENT BILLS SECTION

INTRODUCTION

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The Government Bill Section (GB) is a part of C&A Branch. It deals with the Dues and Charges recoverable from Government and Government Authorities on account of services rendered by KPT. There are a number of services, for which billing is being made by the different departments of KPT to the user Government Departments, but the responsibility of recovery still lies with the Govt. Bill Section for the recovery of dues and charges.

FUNCTIONS OF GB

It performs the following function:

1. Adjustment/Recovery of Wharfage and Storage relating to the cargo belonging to the various Government Departments and the KPT itself.

2. To arrange necessary recoveries from the Government Department, on the basis of the bills generated in respect of the various types of services, etc; rendered by the KPT.

3. Maintaining various demand registers and making review quarterly for the purpose of expeditious finalization of the outstanding bills.

DETAIL OF CHARGES AND DUES BILLED

Following are the detail of charges and dues billed to Govt. departments and agencies by the different departments of KPT.

Nature of Transaction Concerned DepartmentMajor ChargesWharfage Chief Account OfficerStorage Chief Account OfficerMiscellaneous ChargesRent Estate DepartmentElectric Chief Mech. & Elec. DepartmentWater Chief EngineerAnnual Maintenance Chief EngineerDredging Chief Mech.& Elec. DepartmentShip movement Port DepartmentCrane Traffic Department

PROCEDURE OF BILLING –WHARFAGE/STORAGE/OTHER MISC. BILLS

When the Wharfage/or Storage charges (if any) on the goods imported; the representative of Govt. Departments generates the Challans in respect of Wharfage/or Storage, in due

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course, and collect their goods accordingly, by approaching the Data Entry Centre along with the requisite documents.

All the Government Departments and Agencies are require to either pay the cash or any other negotiable instrument or get adjusted their bills from the Let Pass Account/Deposit and Refund Account (D & R Account) and no credit facility is extended. The credit facility, at present, has been granted only to the Embarkation Head Quarter (EHQ).

MISCELLANEOUS BILLING BY THE OTHER DEPARTMENTS OF K.P.T

1. WATER & ELECTRIC CHARGES

The water bills are generated by the Accounts section of Chief Engineer Department whereas the Electric billing is the responsibility of Chief Mechanical & Electrical Engineer Department.

The concerned departments raise the bills of Water and Electric against the respective Government Department and Agencies.

2. OTHER MISC. CHARGES

These bills are prepared by the concerned department in due course, and forwarded to Government Bill Section. These bills are recorded in respective allocated Demand Registers and then forwarded to the concerned Government Departments and Agencies. Payment of these bills is received in due course as stated below:

KARACHI PORT TRUSTGovernment Bill Section

For the Period from………..to…………..

S.No Cheque No

Date Particulars Amount

1 2 3 4 5

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GENERAL INSTRUCTIONS

The various Demand Registers maintained in the government Bill section will be reviewed in the first week of October, January, April and July each year to find out the bills, etc.; issued to Government Departments and agencies , but remaining un-finalized for over three months at the end of the immediately preceding September, December, March and June respectively.

A list of this category of outstanding bills will be prepared, separately for the various departments concerned, and forwarded, in duplicate, to the Heads of the Government Department and Agencies, under D.O. letter duly signed by the C.A.O, KPT, urging for the expeditious clearance of the outstanding bill.

The matter will be vigorously pursued with the departments concerned to its logical end.

CONTAINER TERMINAL OPERATOR

INTRODUCTION

KPT has a contract with KICT and PICT to provide specialized berths managing Bulk cargo,General cargo, Bulk oil piers and likewise Container berth called terminals. A specialized berth where all operations are mainly concentrated on a given type of cargo or a common user container terminal.

SALIENT FEATURES OF THE CONTRACT

Berthing Facilities Taxes Wharf age Charges The Royalty Handling, Marshaling and Storage Charges

o Contract with Premier Mercantile Services(PICT)o Contract with American President Lines (KICT)

REFUND OF CHARGES EXCESS REALIZED

INTRODUCTION

There are a number of reasons due to which the operating revenue already earned is subject to refund to the Port Users. The refund claims in respect of Wharfage and Storage are made to the Refund Section of Traffic Department and the Claims in respect of wet charges are processed by the Port Department. Both the departments have been provided with software for this purpose. The Refund Section of Traffic Department deals with all claims pertaining to Wharfage, Storage and Crainage Charges etc.

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REQUIREMENTS FOR CLAIM

The claimants are required to submit their claim in the following format and necessary enclosures as mentioned below:

PARTICULARS OF REFUND CLAIM

Name of the vessel with arrival date Index No. No. of packages with Marks & Description for which the refund is claim Wharfage Entry…..Date…..Amount paid………. Storage Bill No……….Amount paid………. C.B.E. No……..Dated…….. Nature of Claim Reasons for refund applied for…………

ENCLOSURES

(Strike out items not enclosed)

Wharfage Entry Storage Bill Delay Certificate Detention Slip C.B.R. Order Custom Bill of Entry Invoice (Packing List Bill of Lading or Tally Sheets, in case the weight and measurement

of each package is not given in the invoice) Shipping Bill Crainage Bill For the claims in respect of Wrong calculation of Wharfage Charges, application of

incorrect rates, or wrong calculation or assessment of storage charges, the claimant should contact the C&A Branch of C.A.O Department.

THE STEAMER SECTION

The Steamer Section of the C&A Branch deals with all the matters related to arrange recovery/adjustment of the ship movement and different services charges (wet charges) in accordance with the Schedule of Charges of KPT, from the parties concerned. But the responsibility for generating the bills in respect of different activities regarding ship movement and ancillary services rest with Port & Traffic Departments, respectively. All the procedures

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from generation of Challan/Bills to the recording of payment thereof is software oriented. The Rates in respect of wet charges are recoverable in term of Dollar Values translated into Rupee values for the purpose of Billing and the recovery thereof. The authority for all the wet charges is the Port Act, 1908.

SHIP MOVEMENT AND SERVICES

INTRODUCTION

All the activities, specifically related to the movement of vessel inward, outward or within the port including shifting etc. and providing a number of related ancillary services to the ships touching the Port of Karachi is the responsibility of Port Department. The Operation and the working of the Port Department are being regulated under the Port Act.1908.Classification of income generated by ship movement under heads of account:

The activities and the income generated from the Ship movement and Services can be classified under the following heads of account:

1. Pilotage

Entering and leaving Harbor Ship movement within the Harbor

2. Use of Harbor Facilities

Berth Fee-Bulk Oil Pier Berth Fee-Ship Wharves Berth fee-Lighter/Small Berth Port Dues Mooring Fees Charges and Tolls on Small Craft

3. Hire of Equipment

Ship movement Tugs Misc. craft hire Anchors hoys

4. Ship services

Bunkering Water supply Firefighting and pumping charges Diving team

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Ship repair Chain testing

BASIC DOCUMENTS FOR BILLING AND RECOVERY

The Port Department will furnish the Steamer Section with the following types of basic documents/information through connected software module:

Various Pilot Reports (Via; Inward, Shifting/Swinging, and outward) relating to all the vessels touching the Port.

Various types of documents bearing the acceptance of the Masters of vessels to the different services rendered by the K.P.T.

Pipe line statement with all the relevant details necessary for billing and helpful for recovery of the claim.(Basic data is to be entered by the B.O.P Section of Traffic Department)

Crane requisitions and their Accompaniments. .(Basic data is to be entered by the Crainage Section of Traffic Department).

Application for Sunday/Holiday Overtime at ship wharves/other places other than wharves. .(Basic data is to be entered by all the operational Section of Traffic Department)

Statement showing work performed at night and on Sunday and Holidays, Barge Hire memo relating to Explosives/petrol/dangerous goods Detail of water supply to the vessels.

GENERATION OF SHIPPING BILL

As the Vessel entered into the jurisdiction of the Port the “Wet Charges”, apart from some other charges in respect of ancillary services, begun to levy. A number of charges are levied from Arrival to Departure of the Vessels. For this purpose the Port Department maintains a record of services acquired by a ship/shipping agent in relation to relative clauses of the Schedule of Charges. The Invoice in respect of charges so incurred and accumulated, is called Shipping Bill, issued in the name of concerned shipping Agent.

1. The Port Department will enter all the necessary data (Pilot Report in respect of inward, outward, shifting/swinging and out ward of vessel, the details in respect of Pipe line and Crane usage) etc. into the relative module of the computer, for each of the service provided to the Vessel from the moment it enters into the Port, to the Departure of the vessels. Thus, the Port Department shall generate the Shipping Bills for the recovery from the Shipping Agents before No Demand Certificate is issued.

2. The Shipping Bills shall be forwarded On-line to the Audit Department along with the hard copies of the, Shipping Bill, the Pilot Reports, or any other related document, duly signed by the Dy. Conservator or any other official on his behalf.

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3. The Audit Department on receipt of the On-line Bills and other relative documents including Pilot Report shall audit the same physically by signing or initial it, with usual stamp, as well as on On-line computer Format.

4. After auditing the Shipping Bill, the audit department shall return the same to the Port Department, wherefrom these audited bills shall be forwarded to C.A.O along with a summary statement for recovery/ or adjustment from the “Let Pass Account”.

LET-PASS DEPOSIT ACCOUNT

INTRODUCTION

The KPT has allowed the regular Port Users via; clearing and Forwarding Agents, Stevedores, Shipping Agent to avail the facility of replenish able non-checking Account (Let Pass Deposit Account) with the nominated Bank for the purpose of letting their dues adjusted from the said Account. By opening the Let Pass Deposit Account the Port users authorize KPT, in writing, to adjust the recoverable KPT dues and claims, in accordance with the Schedule of Charges, for the services rendered to them by the KPT.

AUDIT OF BILLS

The Auditor will carefully check all the particulars in the bills with reference to the accompanying documents as well as prescribed rates, in accordance with the KPT Scale of Charges, correcting the incorrect particulars, if any, he will initial all the three copies of the bills along with the correction made and will append his signature.

DEPOSIT AND REFUND ACCOUNT

INTRODUCTION

The Deposit and Refund Account is a current Liability Account in the Books of Accounts of KPT. To keep it separate from the KPT funds a corresponding Current Account is also being maintained with the nominated Bank. The purpose and objective of this account is to deposit the Cheque and Pay orders until the amount is credited to its proper Account. It include the payment of Rent in advance, making advance payments for the clearance of KPT dues, accumulating the security deposits, deducted from the bills of contractors and suppliers.

Certain securities are also kept in this account, which are finally refunded at the fulfillment of commitments. The amounts are retained in this Account until the transaction is finally adjusted.

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As the amount is realized towards dues and charges of the KPT, it is transferred to KPT main Account or refunded from the Liability Account.

Reasons due to which the amounts are temporarily accounted for in this account, and on finalization of the matter these are adjusted accordingly are:

The case is pending in a court of law and KPT cannot adjust the same. KPT intends to file a suit in a Court of law for any reason. The user of the facility is not intending to adjust the dues of KPT in full rather an

insufficient amount is remitted to KPT. The bills needs to be adjusted are not presently available for any reason and cannot be

adjusted forthwith. The Cheque and Pay orders in respect of Rent, use and occupation Charges or for any

other reason paid in advance. A security from the running payments to the contractors has been deducted which shall

be refunded after the work is finally satisfactorily completed.

REGISTER/LEDGERS MAINTAINED FOR DIFFERENT TYPE OF DEPOSITS

As stated earlier there are a number of reasons due to which the amounts are kept in the Deposit & Refund Account, the section is maintaining different ledgers in accordance with the nature of deposits it collect. These ledgers are being maintained in the following format.

Ledger of: - X Y ZAccount of: M/s……………………………..

Month& Date

Particulars Debit Credit Balance

A separate ledger is maintained for each class and type of transaction with index of each ledger account in the beginning, showing the names and full addresses of the parties, duly categorized in terms of the various groups of the initial letters of alphabet appearing in the names of the parties concerned.

Following are the ledgers classified according to the transactions dealt with:

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Agent Bills (AB) o Wharfage and Storage Charges.o Ship movement and Serviceso The Dues recoverable from the Terminal Operator’s M/s KICT and PICT.o Recovery regarding Damages to the property of Karachi Port Trust

Agent Plinth Deposit (APR) Rent Deposit Register (PM) Government Bills (GB) Security Deposit (SD)

o Allocation of plinth for a particular periodo Security against the worko Security Deposit against LPD Accounto Apprenticeship Securityo Tender Money

ADJUSTMENT OF KPT DUES FROM DEPOSIT & REFUND ACCOUNT

Letter to The manager Habib Bank Ltd for transfer of Fund from Liability Account No.1422-40 to Account No 1-39 main Account

PROPERTY MANAGEMENT

INTRODUCTION

The Estate Department deals with the matters relating to the properties of the KPT. The Estate Department deals with the allotment of the land, sites and other erections mainly for the industrial, commercial and residential purposes.

The Traffic Department besides the responsibilities of Cargo Handling also provide spaces to the users of the Port for stacking the cargo for export or marshaling and handling the cargoes at the plinth of the wharf. Simply, the Traffic Department deals with the matters relating to Storage facilities (Constructed property) leased out or rented to private parties and the Government Departments, regarding the Operational Area of the Port.

Plots are Leased-out on ‘long term’ and ‘casual’ basis on fix rentals. The billing of rent is carried out on different periodicals according to the lease and allotments.

S.No Description Lease Period BillingI. Plots at M.T Khan Road 99 years Yearly

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Govt. Departments Different Periods YearlyOil Companies Different Periods YearlyPipe Lines Different Periods Yearly

II. At all Locations 25 Years Half YearlyIII. Casual Allotees 11 Months MonthlyIV. Huts at Sandspit 10 Years YearlyV. West Wharf Industrial Area 25 years Yearly

VI. Plots & Storage Area-TPX Different Periods Quarterly

The KPT is collecting a substantial amount from renting out & lease hold property, as mentioned above, vested and acquired under the Act.

This income is being accounted for by the “Estate Accounting Unit” of C.A.O Department through Billing to different allotters and Lease-holds in association with Estate and Traffic Department.

PROPERTY INCOME AND THEIR HEADS

The Income from the property Management is classified under the following heads of Account.

CLASSIFICATION

Main Account Detail AccountGodown Rent

East Wharf West wharf N.M.B Wharf & Juna Bunder M.I. Yard T.P.X

Ground Rent East Wharf West Wharf Queens Road Sandspit Timber Pond

Recovery of Expenses Lighting Expenses Supervision Charges Other expenses

Godown RentThis income is generated from leased out godown rent, which is dealt by the Traffic Department. Sub-heads of income are on the basis of location.

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Ground Rent This income is generated from leased out grounds and plots of land, and is dealt by the Estate Department. Sub-head of income are classified on the basis of location.

Recovery & ExpensesThese are the different charges paid by KPT, recovered on actual basis from parties to whom the premises are rented and leased out. These include recovery of lighting expenses, supervision charges and Municipal Taxes etc.

ESTATE AND TRAFFIC ACCOUNTING UNIT

The functional uniformity of the work, persuades to operate, controlled, and manages under the A.A.O, (Estate Accounting Unit). The Estate Accounting Unit is responsible to maintain financial record of all the lease-hold and rented properties of KPT vested to the Board under the Act. The Estate Accounting Unit shall work, functionally and administratively under the direct control of C.A.O.

RECORD MAINTAINED BY ESTATE AND TRAFFIC UNIT

The Estate and Traffic Unit will maintain a separate file and individual allocated page of Rent Register for each of the lessee, site operator, and tenants. The Rent Register is formatted as follows:

MISCELLENEOUS INCOMEApart from the four major source of KPT’s income, a significant portion of income is also derived from interest on investments/deposits and other small miscellaneous activities classified under Miscellaneous Income.

1. Different types of Classification of miscellaneous income

The Miscellaneous Income for the purpose of classification can be segmented into two parts as follows:

o Generalo Financial or Investment Income

The Miscellaneous Income (General) can further be sub-divided into budgeted and Non-Budgeted. There is countless nature of transactions which comes under the heading of Non-Budgeted Misc. Income. However the Budgeted Misc. Income includes the revenue from the following heads:

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o Security Passo Outside Contracting (Chief Engineer)o Outside Contracting (Chief Mech.& Elec. Engg.)o Equipment Hire (Chief Engineer)o Equipment Hire (Chief Mech.& Elec. Engg.)o Equipment Hire Othero Sundry Sales Incomeo Sale of watero V.H.F chargeso Rent from Staff Quarters

FINANCIAL OR INVESTMENT INCOME

The Clause 60 of KPT Act.1886, reveals that:

“All moneys at the credit of the Board which cannot immediately be applied in the manner or to the purposes specified in this Act shall be deposited in such bank or banks and subject to such conditions as may from time to time be prescribed by Government; provided that nothing in this section shall be deemed to prohibit an investment in public securities as defined in Section 69; and said securities shall be held in trust for the purposes of this Act by the Board.”

By virtue of the clause 60 of KPT Act as mentioned above the money which can not immediately be applied and remain surplus are deposited with the Government Securities and with the schedule Bank.

The interest income is earned on the investment of the following head of Accounts:

Interest on Revenue reserve Interest on Depreciation & Replacement Fund Interest on Revenue Account Interest on Deposits

PROCEDURE FOR RECORDING MISC. INCOMEo The Misc. Income General is recorded either through Challan or through the

recovery from the salary of the Officers and employees of KPT.o A software Form called Challan has been developed for the purpose of depositing

the amount of transaction into the Authorized Bank.o The interest on investment and term deposit is received through Cheques or Pay

orders.

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o These negotiable instruments are deposited through Challan into the Bank. Thus the Interest income is recorded in general ledger.

USE OF ELECTRONIC DATA IN DECISION MAKING

An efficient Information system is considered to be the backbone of any organization which aims to perform optimally. KPT is already playing a very important role in national economy, to get further improved its performance and prestige it has envisaged strengthening itself by introducing computer-based information system. The main objective of computerization of its operations is aimed as follows:

o To introduce on-line document processing to enable fast turnaround time.o To have data consistency and data integrity. o To have simplified procedure with better monitoring of necessary information.o To provide management of KPT with up to date information in respect of

performance of various activities.o Increase port efficiency by removing redundant information and procedures.o To have a data repository for analysis and studies to improve efficiency.o To facilitate interaction between KPT and various government and private sector

agencies.

MOBILIZATION OF FUNDS

The process by which funds are solicited by the program and provided by donors and partners. The process of mobilizing funds begins with the formulation of a funds mobilization strategy, which may include separate strategies for mobilizing financial and in-kind resources\ funds. Carrying out a financial resource mobilization strategy includes the following steps: identifying potential sources of funds, actively soliciting pledges, following up on pledges to obtain funds, depositing these funds, and recording the transactions and any restrictions on their use. The process is generally governed by legal agreements at various stages. It helps to arrange and collect funds for any process, assets or projects etc. where to get money and where to spend.

GENERATION OF FUNDS

The revenue of the KPT is generated from the under mentioned Operating activities:

1. Cargo Handling2. Ship movement and services 3. Cargo storage

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Apart from the above mentioned main activities there are a number of activities which can be categorized as the ancillary services which facilitate, and substantiate the performance of the main functional activities:

1. CARGO HANDLING

Main Revenue Activity Ancillary ServicesWharf age:

Bulk Oil PierShip wharvesLighter age wharves

Hire of Equipment:

Wharf CraneMobile CraneOther Cargo moving Equip.Pipe-line hireFloating CraneGeneral Barge HireGeneral Goods & other specialized bargesTug hire for cargo bargesHeavy Lift Crane

2. SHIP MOVEMENT

Main Revenue Activity Ancillary ServicesP i l o t a g e:Entering & Leaving HarborMovement within Harbor

Hire of Equipment:Ship movement TugsCraft HireGiles & Gravings Dock HireShip Services Supplied:BunkeringWater SupplyFire Fighting & PumpingDiving TeamShip RepairChain Testing

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Salvage FeesTelephone Charges

3. CARGO STORAGE

Main Revenue Activity Ancillary ServiceCargo Stowage Cargo moving Equipment.

SOURCES OF FUNDS/REVENUE GENERATING OPERATIONAL ACTIVITIES

CARGO HANDLING AND CARGO STORAGE ACTIVITIES

Revenue generated in respect of cargo handling from General Cargo wharves and specialized oil terminals activities can be divided into following distinct categories via:

o Wharf ageo Ancillary Serviceso Storage

The revenue billing activity in respect of Wharf age and Storage have been outsourced and being managed by a private Firm regulated by a Standard Operating Procedure. However the ancillary services are being provided with the management of own resources and have not been outsourced. The charges are collected according to the KPT Tariff.

a) The revenue in respect of leasehold Container Terminal are governed and realized under an agreement with KICT & PICT (Terminal Operators). The main feature relating to the recovery of charges as per “Tariff” and other clauses relates to the financial nature are as follows:

1. Royalty Payment.2. Handling, Marshalling, and Storage Charges3. KPT Charges

b) Ship movement and Services

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The above revenue generating activity relating to ship movement and services is being managed by the Port Department of KPT. The Port Department records all type of financial and non-financial data in a shipping module and generate necessary shipping Bill regarding the charges on each vessel, called at the Karachi Port, of any nature, whereas the recovery is the responsibility of C.A.O’s Department

ALLOCATION OF FUNDS

A fix amount of money is provided to each division and department yearly. As KPT is an autonomous organization, it raises funds for its operation by its own. And allocate its earning at different proportion to every department of the organization. The proportion depends upon the funds need and requirement of the department. If a department suffers scarcity of fund during the financial year, the scarcity will be eradicated by using other department funds, only if that department is having a surplus amount of funds for its operations.

CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS

During our internship with the accounts department we found that KPT is following all the theoretical framework of accounting in the department. As well as, the department is fully integrated by and equipped with modern and up to date information systems. KPT is using IPOS modules to collect, store, operate, excess and process data and financial transactions for KPT. Although the process is lengthy but it has reduced the chances of error and corruption. Our concept of conventional government and semi government organization has totally changed after visiting, observing and analyzing the department. As KPT is equipped with highly competent, eligible and motivated work force, which are not only working for impressive compensation but also for the betterment and development of the organization.

BEHAVIOR OF THE KPT IN ALLOCATION OF VARIOUS FUNDS TO DIFFERENT ASSETS

KPT is highly aware of future trends, challenges, competitors, threats and opportunities. In order to remain competent and equivalent to the current era’s technological and demanding services stream, KPT has started various development programs and allocates funds for them through different means of resources. KPT is investing its assets in different industries, which in return providing a healthy profit. This strategy is helping KPT to maximize its funds and earnings. The more the earning the more money will allocated to all the programs.

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CRITICAL ANALYSIS OF MANAGEMENT PATTERN

The management pattern of the department is not feasible. As it is vertical in authority and hierarchy, it is time consuming for message delivery, has many mandatory hurdles, and lengthy processes to report the top management. The employees are not allowed to tackle any issue other than the pre-defined laws of operations. Employees are bounded not to put any of innovative and creative strategy into the conventional working style. This attitude will rust their competencies and they can get demotivate and less enthusiastic toward their work. Which ultimately affect their performance and hence the department as well as the organization will suffer.

SWOT ANALYSIS

Strength Positive cash flow.

Skilled financial management, good result control & few bad debts.

Growing turnover & profitability.

Access to extensive credit, a strong credit rating.

Due to secured system, there is no chance of error while making bills & transaction.

Weakness Due to cash & accrual basis accounting

system, there are chances of errors while reconciling.

Unclaimed bills.

Skillful, senior and experienced employees turn over.

Over reliance on few customers.

Threats Uncertain social and political situation

of Pakistan.

Gawadar port and bin Qasim port.

PBIT’s new projects.

No back up policy for core management and officers, in case of any sudden personal emergency. i.e. authorized cheque writer etc.

Opportunities KPT is an autonomous entity. Generates

its income as per its will for its expenditures and operations.

Can use more advance accounting systems and software to improve KPT’s performance & to make finance more productive.

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RECOMMENDATIONS

Accounting departments set policies and procedures manuals that outline the guidelines for handling all accounting transactions, including the accounts payable department in charge of disbursements outside of payroll.

Improve online transactions so selecting accounting elements is easier. Enhance the expenditure account code hierarchy to simplify account code selection.

(Code for each expenditure head and extend the code for each section and expenditure). Improve financial reporting processes, including timely maintenance of the campus

organization code hierarchy (a specific code for each departs). Eliminate miscellaneous account codes. (Reviewed miscellaneous account code usage). Improve commodity codes and their relationship to account codes. Developed more

accurate and consistent commodity codes, descriptions, and corresponding default account codes for purchase requisitions and department orders.

CONCLUSION

Over all experience has made us to believe that account depart of any organization works like a feed for it. Although MIS department is the back bone of all operations but if account departs does not work appropriately, there will be no funds mobilization, no better investment plans and no check and balance of the funds. This can result in corruption of high scale and cause damages to the organization. Information systems have made accounting much easy and secure than conventional accounting.

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STORES DEPARTMENT(One week from 5-Jan-2016 to 11-Jan-2016)

INTRODUCTIONThere is a vital role of stores department in operation activities of an organization. In Karachi Port Trust, Stores department is working under the administrative control of general manager (engineering), headed by manager stores, it consist of the following:

Manager store’s office located at head office. Establishment Section located at the head office. Central store depot (CSD) located at west wharf. Manora store depot (MSD) located at manora Purchase Division (local, ADVT & GFP) located at head office. Central Receipt & inspection section (C.R & I) located at west wharf. Petrol pump and fuel oil barge (FOB) section located at M.I. yard. Central disposal Yard (CDY) section (Yard for keeping old and un-serviceable

material) located at west wharf.

CENTRAL STORE DEPOT (CSD)

CSD section of stores is responsible for storage of more than 46000 items in inventory with a unique demanding code for each item. CSD section receive the ordered item than it is sent to inspection to got inspected either the received item is meeting the requirements of indenter or not, if yes, than that item would be deliver to the user Department but if the item is not meeting requirement of indenter than it sent back to the supplier, than whole process will be repeated.

MANORA STORE DEPOT (MSD)

MSD is the oldest depot of KPT which is responsible for the storage of spare parts of ships that are procured before, this section is situated at Manora Island, large area occupied MSD also deal with the old spare parts that have to be disposed in central disposal yard. MSD is connected to

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head office through wireless systems. MSD has its own fire brigade stations equipped with the advance technology of firefighting.

PURCHASE DIVISION (LOCAL, ADVT/GFP)

This section of store department deal with the purchasing of items that are required by the concern department of KPT either it is a local purchase or foreign purchase.

1. GFP/ADVTThis section make procurements away from national boundaries for example spare parts of ship are imported from international markets by government. Procurements from foreign are imported to ports or directly to door step.

2. Local PurchaseLocal purchase section deal with the procurement that counts within 0.1 Million after a process (that includes raising of requisition, approving of that requisition, inspection) the required item will be sent to the concern department of KPT.

CENTRAL DISPOSAL YARD (CDY)

This section of Store department is located at manora all the out of orders items are kept here till disposal. CDY section send an advice note to Store department at Head office than store department held an auction for the disposal of that junks after which all the junks and used items got sold and new one got purchased.

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HIERARCHICAL STRUCTURE

The structure of Store department is vertically arranged.

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MANAGER STORES

DEPUTY MANAGER STORES(P.D.)

ASSTT:MANAGER

STORES(ADVT/GFP)

ASSTT:MANAGER

STORES(CDY)

DEPUTY MANAGER STORES(DEPOTS)

ASSTT:MANAGER

STORES(CSD)

ASSTT:MANAGER STORES

(MSD)

STORES DEPARTMENT OPERATIONS

Following are the operations of store department:

REQUISITION

Requisition is an instrument of indenter, against which material is drawing from Stores Depot. The requisition is processed on prescribed computer online form by the indenting department and forward to Stores Depot, all the columns given in Requisition needed to be filled in by the indenter with full justification for demand.

On receipt of Requisition at Stores Depot, the concerned officer after analyzing sent it back to indenter for rectification if necessary or pass on to concerned Ward for further action (if it is in order).

The Ward keeper is to issue the requisitioned material if available in stock or raise Un-complied with Requisition (U.R) to Manager Stores for its purchasing.

This is all computer online process and all indenters of KPT have access to approach in matter and get status in respect of online Requisition(s) till materialization at their end.

It is added that Stores Depot raising U.Rs for stock able material by provisioning on the basis of previous three years consumption and forwarding the same to Managers Stores for procurement against stock U.Rs.

PURCHASE

On receipt of U.Rs (specific or stock both) in the Head office, the Manager Stores, after consideration sending to Local Purchase or ADVT / GFP as the case may be for further procurement action.

LOCAL PURCHASE

On receipt of U.Rs in Local Purchase section, Enquiry Clerk floats Enquiry tenders through KPT website and place on Notice Board,

Enquiry Clerk float Enquiry tenders as well through Public Procurement Regulatory Authority (PPRA) website.

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a clerk engaged for preparing comparative statement of offers (Item wise) put in order the statements with a week (Approximate) and placed before the Officer In-charge of Local Purchase Section to decide / recommend for approval of competent authority (Up to the limit of Rs.50,000/= Manager Stores is competent, for more than 50,000/= to 300,000/= General Manager (Engineering) and up to 1,000,000/= Chairman is competent to approve the case).

After getting approval Purchase Order is awarded to the winning firm.

ADVT / GFP (IMPORT SECTION)

As mentioned above that the Stores Depot raises U.R for the procurement of material either for replenishment of stock or against specific requirements and the Manager Stores, after consideration sending to Local Purchase or ADVT / GFP as per nature of item for procurement action.

The URs received in ADVT / GFP Section of Stores Department, The case is processed for the approval in principle from Chairman for advertising the requirement.

Thereafter it is advertised in the press and KPT / PPRA websites and simultaneously tender documents are prepared and issue the same to the firms whose written request is received.

As such after opening of tender General Manager (E), constitute the Technical Evaluation Committee to evaluate the offers and the committee forwards the Technical Evaluation Report recommendations to Manager Stores.

On the basis of recommendation Manager Stores convenes the Departmental Tender Committee (DTC) meeting to finalize the recommendations so the approval could be obtained from competent authority for opening of financial bids and further processing for awarding purchase order. Finally purchase orders are awarded to the qualifying firm on receipt of approval.

C.R & I SECTION

All stores items are received at C.R & I (Central Receipt & Inspection) section against Purchase Orders issued from Local Purchase or ADVT / GFP for physical inspection of the ordered material.

The In charge of C.R & I is to ascertain the correctness of the material in accordance with the Purchase Order by qualitatively and quantitatively.

In case technical items the In charge of C.R & I may get assistance for inspection from users to avoid any problematic situation later on.

After satisfactory inspection of the material C.R & I passed it to the concerned ward of the Depot for onward transmission to the indenter or keep in stock as it is.

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ACTION AGAINST REQUISITION BY STORES DEPARTMENT

REQUISITION FOR NON STOCK ABLE MATERIAL

UN COMPLIED WITH REQUISITION TO STORE MANAGER

PREPARATION OF UN COMPLIED WITH REQUISITION

UN COMPLIED WITH REQUISITION TO PURCHASE DEPARTMENT

LOCAL PURCHASE SECTION

REQUISITION FOR STOCKABLE ITEMS

1. FLOATING INQUIRY/ TENDER

2. PLACING PURCHASING ORDER

3. ORDERED MATERIAL BE SUPPLIED AT C.R &I SECTION

4. INSPECTED MATERIAL TO BE TRANSFERRED TO CSD

ISSUE NOTE

GFP/ADVT SECTION

1. TO OBTAIN APPROVAL OF COMPETENT AUTHORITY TO THE ESTIMATED COST

2. INVITING TENDER

3. OPENING OF TECHNICAL OFFERS

4. TECHNICAL EVALUATION

5. TO OBTAIN APPROVAL OF COMPETENT AUTHORITY FOR OPENING OF COMMERCIAL OFFERS OF THE TECHNICAL QUALIFIED FIRMS

6. ACCEPTANCE LETTER TO SUCCESSFUL BIDDER

7. PURCHASE ORDER/AGREEMENT

9. TO TRANSFER THE MATERIAL TO DEPOT AFTER INSPECTION

8. MATERIAL TO BE SUPPLIED AT C.R & I SECTION FOR INSPECTION

POLICIES OF PROCUREMENTS

Procurement in stores department of KPT are made under the authority of Pakistan Procurement Regulatory Authority 2004, Purchases are made within the codes of Pakistan Procurement Rules, Obeying these rules are applied to every procurement made in Local Purchases or GFP/ADVT section of Stores Department.

36 (a): All bids shall be opened i.e. open tender is issued for the procurement of the items.

36 (b): this rule includes the bidding of Financial and Technical proposal which have to be opened within a bid validity period, the bid found to be the lowest evaluated bid would be accepted.

42 (a): Alternative methods of procurements, procurements made below the financial limits of twenty five thousand rupees would be exempt from the requirements of bidding or quotation prices.

42 (b): this rule is applied when the cost of object of procurement is below the prescribed limit of one hundred thousand rupees. In this the request is made for the quotation of the procurement objects.

42 (c): the procurements of spare parts or supplementary services from original manufacturer or suppliers will require direct contracting from the manufacturer; this rule is applied when this situation happened.

NUMBER OF EMPLOYEES

Store Department is equipped with 149 employees that are helping stores department for increase in its productivity and customer satisfaction.

MAJOR FUNCTIONS

Main function of Stores Department is to manage the stores material by provisioning, procuring as well as ensuring the availability of material at Stores Depots to meet specific demands of various users to avoid any uncertainty in Port operational activities. It is responsibility of the Stores department to keep up appropriate record of inventory to manage stores material by provisioning, procuring and storing to maintain functions efficiently & effectively. There are many selections of materials stored chemicals, metals, liquids, gases, spare parts, equipment, stationery items or finished goods, ranging from engineering components to drugs and pharmaceuticals. Each of these items will require a specific type of storage and their handling and preservation methods will vary accordingly.

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MAIN OBJECTIVES

There are following main objective of Stores Department:

High inventory turn over Low cost of acquisition & possession Continuity of supply Consistency of quality Favorable suppliers' relations Good records New material and products Economic make-or-buy Product improvement Standardization Inter department harmony Forecast

SUPPORT TO OTHER DEPARTMENTS

MIS Department

Before ending quarter 2004, Stores department was working manually, thereafter computerized system was streamlined (partially) and about ten thousand items were entered in stores inventory with description / specification & NSN as such with the passage of time and help of MIS department inventory software installed on KPT Intranet. This Software not only facilitates the Stores department but it is friendly software and for all users who are authorized to draw material from the Stores department. At present there are more than 200 users available on the Intranet and they all have a right of entry through demanded code. By this software every user has access to acquire status in respect of their requisitions till materialization, but it is the fact that no user has right to change / edit or remove information from their Requisition(s) if action is taken on it or return back to them from Stores Department for rectification. It is also explained that information regarding procurement of spare parts of more than 100 vehicles through Stores department is available on Intranet; this may be searched by vehicle’s Registration number. The information in respect of transaction of spare parts of KPT Crafts has also been brought up on Intranet.

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SWOT ANALYSIS

Strengths Continuity of supply of items. Product improvements. Inter Department Harmony. Better inventory forecast. Highly integrated inventory programs.

Weaknesses MSD disposal yard having junks. MSD workshops are less in production. Heavy machinery is kept in Manora

workshops instead of getting them workable.

Opportunities ERP systems can be introduced. Flexible procurement. Trustable suppliers. Indenter satisfaction.

Threats Increase in demands for goods due to

expending KPT’s operations. Recession: This causes a large increase

in price rates of goods. Inappropriate and insufficient budget

head for stocks and goods. Time consuming and lengthy processes

for procurements. Limited suppliers. Vertical flow of authority, highly

influencing the procurements of goods.

RECOMMENDATIONS

After experiencing the Store Department we would like to recommend that ERP systems should be installed in whole KPT in order to maintain advanced operations. ERP system will integrate whole KPT to stores Department this will convenient the stores department to collect data from whole KPT at one time it will also become time saving. Another recommendation it must empty its junk yard that is situated at manora MSD because it is occupying a huge space as spare parts of ships and ferries kept there.

CONCLUSION

Store Department of KPT working in an excellent flow of procuring any sort of items, procurement is done on certain rules and regulations as per degree of requirements which help to maintain its harmony among all the department of KPT. Store department fulfill all sort of requirement needed by departments of KPT. Every item is procured on the basis of requirement even if it is expensive enough it must have to meet the requirements. The most considering part of our internship is to provide the needed item on right time with right quality, that’s what store department is busy in providing its services with enthusiasm.

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MIS DEPARTMENTOne week from 12-Jan-2016 to 21-Jan-2016

INTRODUCTION

Management information system, or MIS, broadly refers to a computer-based system that provides managers with the tools to organize evaluate and efficiently manage departments within an organization. KPT has its all operation automated with help of MIS. They have their own department to enhance the operation of port. The Management Information System Department (MIS department) becomes the first department in Karachi Port Trust to obtain “ISO 9001:2008” The certification covers software designing, hardware and network support services of information and technologies areas/functions of the MIS Department. This certification has made the KPT the first in ports and shipping sector to have an international quality management certification and reflects on the professionalism as well as procedural formalities at par with international standards. MIS department is reporting to Engineering Division.

Operations are supported by MIS department of KPT & controlled by Different departments e.g. Port, Traffic, and CM &EE etc.

PRODUCT LINES

Software Hardware Network

OPERATIONS OF MIS DEPARTMENT

The main operations of MIS department are to manage the information of:

Cargo Handling. Shipping Positions. Container Handling.

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NUMBER OF EMPLOYEES IN MIS DEPARTMENT

In MIS department total 49 employees are working.

STRUCTURE OF MIS DEPARTMENT

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Chairmen

General Manager (E)(Eng.)

Manager(MIS)

Deputy Manager(MIS)

Deputy Manager(Software)

Deputy Manager(Hardware)

Deputy Manager(Network)

FUNCTIONS OF THE MIS DEPARTMENT

Following functions are set forth:

To study and analyze the different manual working procedures presently under practice from computerization point of view

To lay down guidelines and to give suggestions to make the systems more efficient and automated.

To submit the appraisal systemized reports to the management as and when required or as scheduled.

To carryout feasibility studies for designing computerized systems To have developed and implement the designed system in the best proper manner. To ensure that all systems are functional and to ensure that backups ate timely taken. To develop better and effective automated management information systems to assist top

executive management of the Port in line with the scope and requirement provided. To assist department in development new procedures in line with automated activities. To render advice to various divisions and departments regarding feasibility of

computerization in their fields To conduct computer courses as scheduled by staff college. To keep itself abreast with technological advances and skills by timely training officers

and staff To carry out other functions as assigned by the management.

FUNCTIONS OF MIS THAT SUPPORT TO OTHER DEPARTMENTS

1. Technical/Network Support

Perform user interactions. Implement procedures that will ensure stability of Application Software. Implement network client and support. Maintain user complaint logs. Coordinate and liaison troubleshooting complaints with third party vendors. Provide day to day operational support to clients. Responsible for carrying out repairs and

maintenance to hardware and peripherals. Additionally, carries out any other duties assigned by the Deputy Manager (Network).

2. IT Support

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The function of the IT support is to oversee and facilitate the various facilities that are oriented towards assisting usage of specific technologies such as managing resources, scheduling, hardware issues etc. Software hardware upkeep, troubleshooting management and resource handling. Handling and resolving complaints in coordination with IT and IS sections.

OBSTACLES OVERCOME

The biggest obstacle or challenge was although that a batch mode computer setup existed but computerization at this stage required a complete new beginning from scratch. Since this was new beginning, the working ethics, mindset and some procedures had to be changed and establishment of a proper computer center with all necessary hardware was required. Two Training labs were established and skilled personnel had to be hired for the in-house development and tailoring of other application software in addition to day-to-day activities. Policies, procedures, practices and organizational structure had to be put in place to provide reasonable assurance that the organizations business objective will be achieved and undesired risk event will be prevented. Access to information prior computerization was possible at any level, is now controlled by different access levels and authorization codes at the same time assuring the users of reliability, accuracy, database integrity and retrieval of information which would otherwise involve huge man hours. Managements top down approach and extensive training were key components in avoiding or reducing expected problems. Over 500 personnel including officers were initially trained and new incumbents are now provided hands-on training. Another challenge was to ensure continuous user confidence in the system during implementation as they had been habitual of manual processing.

SECURITY OF THE DEPARTMENT

Security of the MIS department is paramount being the nerve center of the information system of the Port. Physical security is covered through use of CCTV cameras, presence of PSF sentry at the entrance for access control and the manning of the center round the clock by an officer of the department. In addition the entrance of KPT serves as the first line of defense.

TRAINING

Training is a fundamental basis of success of any setup. Continues training of staff on current and expected systems and technologies is critical in ensuring existence and remaining at par with technological advancements. It is also a key of source of encouragement. Local and foreign training both are to be provided to the IT staff.

TECHNOLOGY USED

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KPT is using 70 software to run its operations. Some of them are:

1. IPOS (integrated port operation system)2. Modules of IPOS:

o Billing o Cargoo warehouse

3. IGM converter (import general manifesto) It contains basic information regarding vessels cargo, weight, captain’s name, Expected arrival time, date, years etc.

4. EGM (export general manifesto)5. LMS (library management system):

It collects, regulates, stores and maintains data of all the books, port Magazines, research paper etc. in KPT’s library as well as the data of Borrowed books, refund books, etc.

6. Data is being store on 3 servers located at MIS department i.e.:o H servero Proximuso Nexia

7. IVR (interactive voice respond system)8. Cargo and container module9. E-Pass:

A software use by shipping agents to give information related to the vessel’s Cargo.

10. WEBOC (web based one computer):

It is a system that helps custom to maintain containers movement. It helpsto increase transparency and reduce corruption and stop forgery.

11. CACS synchronizer12. Hospital offline system13. CPIO (central pass issuance office)14. SDLC( software development lifecycle)15. Modes of communication:

o Fiber o VPN( vertical private network)o Wirelesso UTP

16. Have a server room in which 15 servers are used17. Sanction management system18. MIS roster off compensation system

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o Monthly rostero Evaluate leaves/off compensationo Off compensation/view/edit officers leaveo Employee recordso Reports

19. VMS (visitor management system):It stores, manage and update date to date and daily bases data. It uses byReception Desk

20. FTP( file transferring protocol)

SYSTEMS USED BY MIS DEPARTMENT

Vessel Tracking System (VTS) Video Management System (VMS) Karachi Port Operation Centre (KPOC) Implementation of ISPS (internet service providers) Codes Vessel Traffic System (VTS) Failover wireless links Biometric entry Internet facility Local internet network fiber optics IPOS (integrated port operations system) WEBOC (web base one computer)

SYSTEMS USE BY DIFFERENT DEPARTMENTS

1. Admin: Payroll system Pension system Leave amendment system Hospital management system Personal management system ACR management system

2. Finance: KPT bill payment system GPF advance provident system

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3. Stores: Inventory management system

SWOT ANALYSIS OF MIS DEPARTMENT

Strengths

Profitability got increase Customer satisfaction Transparency Employees got productive Secured personal data

Weaknesses

For any systematic program, all the information must be in detailed because systems are highly sensitive to change.

MIS require a lot of processing power to attain the expected result on time.

It requires a careful observation changing any sort of data.

Opportunities

ERP system installation Balance scorecard system Customer relationship

management (CRM) Decision making become

convenient

Threats Security is a big threat, all data is network

based, and requires intense care of data. Information of MIS department is critical,

it should not be go to wrong handed, as it is the backbone of KPT.

The transaction capturing system should be very accurate in capturing the data.

RECOMMENDATIONS

ERP system must be introduce in order to create more integrity within the KPT

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MIS requires programming, monitoring and evaluation of expertise, which numerous organizations lack.

Budget head of MIS must be kept appropriate for its requirement as it is most costly department, should be launched in every organization.

CONCLUSION

We conclude that MIS department has got advanced in KPT. Government organization such as KPT running a department with its software is no more like a blessing. Now, MIS provides relevant software to each department in order to maintain a workflow within the organization. The end results are: profitability increased, expenditures got reduce, high customer satisfaction, transparency in dealings, employees productivity increased. Up till now, more than 200 users available on the intranet and they all have access to feed data through demanded code.

KARACHI PORT TRUST SWOT ANALYSIS

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STRENGTH

Customer satisfaction Integrated information system Low price for their services Nearby location to main city Business centered

WEAKNESS

Shortage of Trained technical Staff. Less employee’s involvement. Could not appraise employee’s

performance.

OPPORTUNITIES

PDWCP (Pakistan Deep Water Container Port).

They can build in-house terminal for more revenue.

ERP systems can be introduced for more integrated operations.

THREATS

Competition by nearby port, Gwadar Port.

Port Qasim.

RECOMMENDATIONS

KPT operates the most technically advanced and efficient shipbuilding and ship repair facilities

KPT should conduct plans for its sea and ports. KPT should pursue an intensive course of infrastructure development so as to maintain

economic growth, productivity and competitiveness. KPT should access to efficient transport modes of sufficient capacity (road, rail, river,

etc.) Can the goods get to and away from the port quickly, without sitting unproductively on congested roads?

Port operators are often faced with having to choose between an ‘acceptable’ level of automation and efficiency, rather than ‘possible’.

Developments need to be embedded in larger master plans, looking at their economic, social and environmental impact as well as their effectiveness and efficiency of operations and long-term viability.

CONCLUSION

For any government organization first thing come into mind is it would be devastated and corrupted organization, there would be no use to be visited but after the internship program we

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have realized that not every organization is less productive and less integrated. KPT has changed our way of thinking to the government organizations. It has a huge integrated networking system that inter connect every other departments to each other. All the departments are working integrally; no activity of organization would remain hiding from the supervisor. Despite of being busy whole day with their work all staff from Manager to junior clerk all behaved very familiar with us they entertained us very calmly and provided every sort of documentation that will help us to make a report, we had got very practical experience in KPT. Manora workshop was one more thing we visited out of our schedule, that was a huge set up of workshop where every sort of ferries part are being made, which is also a part of Karachi Port.

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