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CHAPTER – IV

PROFILE OF THE NEW MANGALORE PORT TRUST

AND WAREHOUSE MANAGEMENT

4.1. INTRODUCTION

The Mangalore Harbour Project was started in 1962 and completed

in May 1974. The New Mangalore Port was declared as the 9th Major Port

on 4th May 1974 and it was formally inaugurated by the Prime Minister of

India, Smt. Indira Gandhi on 11th January 1975. Till 31-03-1980, both the

project and the Port were centrally administered by the Government of

India. On 01-04-1980 the Port Trust Board was set up under the Major Port

Trusts Act, 1963 .Since then the Port has been functioning as the 9th Major

Port Trust and has fallen in line with other Major Port Trusts functioning in

the country.

4.2. VISION OF NMPT

To be a professional provider of Port Infrastructure and services of

world class standards.

4.3. MISSION OF NMPT

To become one of the leading Liquid and Multi-cargo Port in India

by adopting the State-of-the-Art Technology infrastructure and cargo

handling system, complying environmental, social, safety and security

standards.

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4.4. SALIENT FEATURES OF NMPT

Deepest inner harbour on the west coast with 15.40 mtrs. depth at the

entrance channel.

First among the Major Ports of India accredited with International Ship

& Port Security (ISPS) Code Certification and an ISO 9001-2000 Port.

Equipped with Vessel Traffic Management System (VTMS).

Easily accessible to 3 National Highways NH 13,17,48 – Konkan,

South Western and Southern Railway –Air Port.

Highest LPG handling Port in India.

4.5. SERVICES PROVIDED BY NMPT

The New Mangalore Port has been ever responsive to the changing

needs of maritime trade. The route to success is paved with adoption of

modern technology and providing quality services.

Immediate attendance to ships – Berth on arrival

Round-the-clock navigation and berthing and unberthing of ships.

Single window system.

Green channel delivery for Star Trading Houses.

Uninterrupted supply of Power.

Sufficient covered and open storage area near the berth for storage of

cargo.


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Ample open storage area inside the Security Compound Wall.

Separate Container Stack yard

Railway marshalling yard for handling Rail bound cargo

Updating of daily vessel position and containers in the ports home page.

Arrangements for supply of bunker and fresh water to vessels.

Embarkation and dis-embarkation of passengers and services connected

with cruise.

Modern Cruise Lounge

Fire fighting and Salvage operations.

Allotment of land to the Port Users for Storage of Cargo.

Security coverage.

4.6. STANDARDS MAINTAINED BY NMPT

Round the clock cargo operations

Round the clock delivery of FCL containers for factory de-stuffing

Refunds within 15 working days for vessel related claims and within 20

working days for cargo related claims.

Facility for Direct Delivery of cargoes from the hook point

Round the Clock receipt of Export Cargoes

Facility for in-house stuffing of containers.


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4.7. COMMITMENT OF NMPT

The NMPT’s Commitment and endeavor is to provide best services

to the satisfaction of the customers. Port users are our valued customers

and our partners in the growth of the port.

4.8. EXPECTATIONS OF NEW MANGALORE PORT USERS

Grievances shall be acknowledged immediately and reply will be

given within 60 days. Corruption related complaints received by the

Vigilance Department will be registered within 2 days and investigation

will be started immediately and report will be submitted to the competent

authority as early as possible depending on the nature of the complaint.

At New Mangalore Port minimum availability of equipment in each

working shift will be

At least 2 Reach Stackers of 45 Ton capacity each.

At least 1 No. Mobile Crane of 75 Ton capacity

At least 2 No. Forklift of 3 Ton capacity

At least 1 No. Shore Crane of 10 Ton Capacity

Issuances of laminated dock entry permit within 15 working days.

Issuance of Temporary lorry dock entry permit within two hours and

permanent lorry dock entry permit on same day.

Round the clock rendering of services by the experienced

staff/workers.


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Display of Identity Card by all the operational staff and officers.

Rendering of the vessel related bills within 5 working days of

vessels sailing

Acceptance of remittances electronically

Rendering of container related bills on 20th of every month.

Keeping the Port environmental friendly.

Keeping the Port user friendly.

Personalized attention to the vessel operations.

Safe storage of cargoes in the Port.

Round the clock supply of reefer plug points for reefer containers.

Round the clock watch & ward.

4.9. NMPT’S CUSTOMERS

Shipping Company/Steamer Agents

Importers/Exporters

Clearing & Forwarding Agents

Stevedores

Transporters

Container Agents

Logistic Service Provider

Internal Customer

All Employees


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Customer Communication:

Through Website (www.newmangalore-port.com)

Through brochures / Corporate CD’s

Interactive Committees (Interaction with Port Users through B.D.C.,

i.e. Business Development Cell)

Monthly Ports Operations Meeting

Daily Berthing Meeting etc.

4.10. DIFFERENT DEPARTMENTS OF NMPT AND ITS

FUNCTIONS

Being an ISO 9001: 2000 port, the New Mangalore Port strives to

provide efficient service to its customers through its specialized

departments/divisions. The main functions of the departments/divisions are

as follows:

i) Administration Department

The Administration Department looks after the general

administration, human resources development and management in New

Mangalore Port, conducting board meetings, Public Relation, all personnel

matters of Ministerial Staff and officers, training, co-ordination,

Implementation/promotion of Official Language Hindi monitoring court

cases in different courts and maintaining harmonious Industrial Relations.


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ii) Civil Engineering Department

Main functions and responsibilities of Civil Engineering Department

are construction and maintenance of wharves, transit sheds, various

buildings, roads including residential accommodations in the Port area and

the Management of Port estate. Dredging is also carried out by Civil

Engineering Department. The Water supply both for wharf and quarters of

NMPT is under the Civil Engineering Department. The planning and

development project in future construction is also with the Civil

Engineering Department.

iii) Mechanical Engineering Department

The Mechanical Engineering Department is responsible for the

procurement, operation, maintenance and disposal of mechanical and

electrical equipments of the Port. The wharf cranes, mobile cranes, Fork

Lift Trucks, Weigh Bridges, Diesel generator and other equipments are

regularly serviced and maintained to offer round the clock service to the

port users. Besides, the central stores division procures various spares and

consumables from time to time on need basis. Also, the unserviceable and

condemned machinery, machinery parts, vehicles and other related scrap

are disposed off through central stores. All Port vehicles are serviced and

repaired periodically to ensure availability throughout.

iv) Traffic Department

The main functions of Traffic Department are planning for the

vessels to be Berthed and the vessel movements. Planning for cargo /


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loading / unloading, operation of ship, transit operation, receipt and

delivery operation, yard / warehouse storage operation, railway operations

for the movement of cargoes. Some of the commercial functions of Traffic

Department are generating and furnishing data for collecting cargo related

charges like wharfage, equipment related charges, rental charges,

weighment charges, demurrage as well as documentation aspects. The

department takes care of marketing functions, Management Services, Dock

Safety units are working under the Traffic Manager.

Registered Cargo Handling Workers Administration Wing

Registered Cargo Handling Workers Administration Wing which

was under private pool Management was taken over by the Port on

15.03.1990. All the cargo handling workers are under the direct control of

Registered Cargo Handing Workers Administrative Wing. The Traffic

Manager of N.M.P.T. is the Administrative head of the R.C.H.W. Wing.

v) Marine Department

The main functions of Marine Department are general conservancy

and waterfront operations pertaining to Pilotage of ships of this Port and

ensure safety and look after fire fighting arrangements, providing tugs and

pilots for piloting vessels, maintain tugs and all floating crafts in a good

condition for service. Deputy Conservator is also responsible for crisis

management, VTMS & ISPS.


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vi) Finance Department

Important functions of Finance Department are general accounting,

revenue collection, establishment, contractual payments, cost analysis,

budgeting, auditing and advising to the Chief Executives regarding

financial matters. EDP unit is also functioning under this department.

vii) Medical Department

The Port Trust Hospital is extending medical facilities not only to

the Port employees/dock workers and their families but also to the CISF,

Resident Audit Office Staff and their families, Pensioner and also Coast

Guard, Radio Wind Observatory, Customs on payment basis and also

extending emergency treatment for outsiders. Some of the major/minor

surgeries are being carried out in the PTH Operation Theatre.

viii) Vigilance Department

A close monitoring is maintained by the Chief Vigilance Officer of

the Port Trust on the various activities of the Port where corrupt practices

are likely to be committed by the employees. All complaints received by

the Vigilance are promptly and properly investigated and action taken as

per rule. Port users / employees can submit complaints regarding misuse

of Port fund or corruption to the Chief Vigilance Officer. Vigilance

Department is also closely involved in system improvement to prevent

corruption in different areas.


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Redressal of Grievances

Chairman of the Port Trust is available to general public, Port Users

and Employees on working Wednesdays to receive complaints. They can

also contact the Chairman, Deputy Chairman and the Heads of Department

in order to get redressed their Complaints on any working days with prior

appointment. There is Public Grievances Redressal machinery functioning

in the port, Secretary, NMPT as its Director. Any public having grievances

can meet him on every Wednesday at 3.00 p.m. In this connection details

are displayed in the separate Notice Board at the entrance of the

Administration Building. The name and Telephone Numbers are as given

below:

Name Designation Office Residence

Shri P. Tamilvanan Chairman 2407300 2407200

Shri C. Harichandran Secretary 2407438 2407141

Shri D.V. Ananth FA&CAO 2407353 2407425

Shri S. Gopalakrishna Traffic Manager 2407440 2408263

Capt. Pradeep Mohanty Dy. Conservator i/c. 2407419 2407696

Shri M.R. Hedaoo C.E. (Civil) 2407493 2407232

Shri Ivan Monterio C.M.E. 2408200 2456726

Shri Ahamed Ayub. B. C.V.O. 2408264 2407149

Dr. S. Sampath Kumar C.M.O. i/c. 2407948 2407536


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Time Bound Services to the Port Users

Processing of import/export application - within 2 days

Shipping dues, refund claims etc. - 30 days

Out-turn statement - 45 days from the sailing of

the vessel

4.11. NMPT’S SWOT

NMPT has a number of strong and weak points in terms of its

position in the Indian and international port facility and service markets.

Furthermore, NMPT faces a number of opportunities and threats.

Strength of NMPT

In the Arabian Sea basin the port of New Mangalore is ideally

positioned to the logistics service industry and its customer base for a

number of reasons.

The port is best suited to cater for South Indian cargo flows that

originate or destined for the States of Karnataka and partly for Kerala.

The hinterland consists of substantial population and a variety of

industries such as the garment producing industry, mineral ore

production, thermal power plants, electronic equipment and consumer

goods like coffee and refrigerated cargoes.

With a hinterland area of over about 50 min inhabitants NMPT has a

sound base to handle a substantial volume of containers for both


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imports and exports. Distances by road or by rail to major neighbouring

ports are at least 250 km, which supports shippers of goods to choose

New Mangalore based on origin-destination cost of transport.

The port is equipped with well-maintained deep-water berths up to 15.1

mcd depth and is operational except on three national holidays.

However shipping activities (berthing / deberthing) are being carried

out even on these three national holidays; it operates 24 hours per day

and can provide facilities for almost all cargo types.

Back up area is in general sufficiently available. This area allows

provisional storage and handling operations to be executed or to be

established.

The NMPT enjoys a healthy financial position in both balance sheets

and profitability.

Weaknesses of NMPT

Its marine infrastructure is designed to allow ships of maximum Length

Over All (LOA) 245 m. This implies in general that ships over Dead

Weight Tonnage (DWT) 100,000 cannot be handled in port due to

navigational constraints and the channel depth and width.

Cargo handling for certain dry bulk cargoes (iron ore, coal) are still

done manually which results in high Turn Around Time (TRT) for

ships. This creates subsequently high cost of transport to shippers of


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goods. The manual handling also results in unsafe and environment

unfriendly effects such as cargo spills and dust.

For existing terminals the NMPT is required, by agreements to deploy

the Port’s dock labour only to cargo handling operations (ship-shore).

This restricts the NMPT to enter into contracts with private operators

that manage a NMPT terminal with their own labour force fully and this

may lead to higher labour cost compared to that in minor/private Indian

ports that are at liberty to employ and manage labour.

Other weak points include the environmental hazards from dust and

spills and rather administrative authority structure (valid for all Major

Indian ports) that restrict the management and the Board of Trustees in

setting up its own (market oriented) port tariffs and service packages for

staff.

The port connectivity seems sufficient at present but the connectivity to

National Highways is in a poor state, heavily congested and sometimes

not suitable for heavy truck traffic. The port enjoys a railway

connection to a marshalling yard, but there are no direct railway lines to

any berth.

Opportunities of NMPT

NMPT has ample opportunities to increase its throughput and improve

its functions. Some private (captive) customers show firm interest in

developing berths and jetties time is ripe for Public Private Partnership


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(PPP) deals. The partnerships will appear in all cargo types that are

presently handled.

The high volume of captive cargo creates a sound base of income to

NMPT and has resulted and will result in sound operating profits. This

automatically implies that funds become available for infrastructure

development preferably in cooperation with private investors and

operators of cargo handling.

The participation in the Special Purpose Vehicle (SPV) established to

develop the Mangalore’s Special Economic Zone (SEZ) creates further

opportunity to execute activities that benefit from tax incentives. Apart

from NMPT’s involvement, the SEZ will generate additional cargo

flows from nearby industrial and trading activities.

Threats of NMPT

NMPT faces through its institutional structure (a Port Trust under the

MOSRTH) the ever disturbing handicap of being a public controlled

enterprise. Many regulations limit the management to act as an

independent and professional company, such as the labour laws

(no retrenchment), the HR routines (promotion), and the labour

conditions (exceeding market levels).

Furthermore the international vessel size developments will create

additional financial burden of capital dredging and strengthening of

quay infrastructure.


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The port’s capacity can be improved by shifting cargo handling

technique to faster and safer mechanisation. This improvement may

however still be insufficient to cater for certain growth of cargo flows

beyond projected cargo flow volumes. This may result (again) in

handling capacity shortage for certain cargo types which may result in

either over-utilisation of berth(s) or additional waiting time for ships.

The port’s competence at present is short of certain skills (marketing,

IT, HR management) to cope with future rationalisation of activities

and promote and stimulate the port to the market.

The competition may not be very strong at present but other major and

minor ports also develop and will try to take a share of the competitive

cargo especially when logistics are favourable.

Ever continuing competition from nearby ports Cochin, Mormugao,

Chennai and non-major ports of Karnataka which may result in a

possible deterioration of tariffs.

The railway capacity of the main connecting lines (to Bangalore) may

prove insufficient in the medium and long run to handle all cargo to and

from the port, not in the least caused by the expected modal shift from

truck to rail.


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4.12. IMPORTANT PROJECTS OF NMPT

Project 1

The total investment on infra and superstructure for the mechanised

iron ore berth 14 is estimated at Rs 196.6 Cr which differs substantially

from the original NMDP plan (Table 0.3 and the later by NMPT revised

investment cost of Rs 133 Cr. The difference is caused by the different

assumptions in applied handling technology and cost estimates.

The project is generating an IRR of 32% for the private operator,

while the port can expect a very an IRR of 120%. Very significant

economic cost reductions are realised in terms of vessel time, which

benefits the customers. The project is financially and economically

attractive and is about to be awarded to one of the 4 tendering operators.

Project 2

The project is generating an IRR of 22.2% for the operator, on the

basis of the shadow revenue assumption. For NMPT the IRR is irrelevant

since hardly any investment is made. The net income per ton rises

marginally compared to the current situation, but the throughput increases

for no investment. The project frees up capacity on berths 2, 3, 6, 7 and 14,

which will be available for other cargoes. Significant cost reductions are

realised in terms of vessel time, which benefits the client. The location of

the projects is shown in Figure 4.1.


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Figure 4.1

Location of top Projects

Project 3

The upgrading of the container terminal at berth 1 and 2 generates a

positive income only if and when a “Mechanised Handling” or an all-in

stevedoring tariff is introduced. At the projected throughputs over the

investment period, a tariff of around Rs.700 per box would suffice to

generate a 12% IRR. Yet, international tariffs are considerably higher than

this level, and a tariff of Rs. 3,000 per box would generate an IRR of 45%.

The consultants advises to continue the upgrading and to gradually raise

handling tariffs up to market levels.


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Project 4

The berth number 13 oil jetty project is generating an IRR of 29%.

As throughput is increasing and insufficient capacity remains, utilisation of

the existing facilities will increase. This project can relieve that situation

and do so very profitably. Even if discounts are to be negotiated, the

project will remain profitable.

Further economic development of India requires an efficient

national transport system. The seaports are major components of that

system; the bulk of the imports and exports (about 95%) are entering and

leaving the country via its seaports. India has twelve major seaports and

185 minor seaports along a coastline of over 7,514 km. The twelve major

seaports, Kolkata, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin,

Cochin, New Mangalore, Mormugao, Jawaharlal Nehru, Mumbai and

Kandla handle about 75% of total Indian port traffic. The overall growth of

India’s port traffic is estimated at 10% per annum. Due to the foreseen

national economic development in the coming decades, a strong further

growth of the country’s port traffic can be expected.

4.13. IMPORTANT FEATURES OF NMPT:

Port Area:

Water Spread – 320 Acres (129 hectares)

Land Area – 2030 Acres (822 hectares)

Total – 2350 Acres (951.04 hectares)


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Table 4.1

Berth Particulars of NMPT

Sl. No.

Name of Berth Type of Berth Draught

(In Mts.)

Length (In

Mts.) DWT

1. Berth No.1 Gen. Cargo 7.00 125 4000



4. Berth No.4 Gen. Cargo/Liquid Ammonia/Phosphoric Acid 9.50 198 30000

5. Berth No.5 Gen. Cargo/Bulk Cement/ Edible Oil 9.50 198 30000



8. Berth No.8 Iron Ore/ Gen. Cargo 13.00 300 60000

9. Berth No.9 POL/LPG 10.50 330 45000

10. Berth No.10 Crude Oil/POL 14.00 320 120000

11. Berth No.11 Crude & POL 14.00 320 120000

12. Berth No.12 POL & Chemicals 12.50 320 50000

13. Berth No.13 Under Construction 12.00 275 35000

14. Berth No.14 Gen.Cargo/Iron Ore/Coal 14.00 350 85000 Floating crafts:

22.5 T Bollard Pull Tractor Tug (VSP) – 1 No.

32 T Bollard Pull Tug Tractor Tug (VSP) – 3 Nos.

50 T Bollard Pull Tractor Tug (VSP) – 1 No.

Pilot Launches – 3 Nos.

Mooring Launches – 5 Nos.

Survey Launch – 1 No.

Buoy Laying Tender cum Skimmer 50 T capacity – 1 No.


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Table 4.2

Cargo Handling Equipment of NMPT

S.No. Equipment Capacity Total

1. Wharf cranes 10 Tons 3 Nos.

2. Mobile cranes:

i) TIL- Grove-RT-880 75 Tons 1 No.

ii) Escorts Model 8100 10 Tons 1 No.

Pick & Carry hydraulic Crane

iii) Reach Stacker 40 Tons 2 Nos.

3. Forklift Trucks 3 Tons 2 Nos.

10 Tons 1 No.

Storage Spaces of NMPT

Table 4.3

Transit Sheds / Overflow Sheds of NMPT

Transit Sheds

Nos. Area Capacity

1 5574 Sq.mtrs. 10,000 MT

1 4380 Sq,mtrs. 8,000 MT

1 Overflow Sheds

1 4920 (41m x 120m) 8,830 MT

2 4380 Sq.m. each 8,000 MT


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Table 4.4

Covered Warehouses of NMPT

S.No. Owner Nos. Area Capacity 1. N.M.P.T. 2 2190 Sq.m. each 4000 MT each Workshop Godown 1 2600 Sq.m. each 6000 MT

2. C.W.C. 4 2190 sq.m. each 4000 MT each 3. Consolidated Coffee 1 2190 Sq.m. each 4000 MT 4. Coffee Board 1 2190 Sq.m. each 4000 MT 5. Aspinwal & Co. 1 2190 Sq.m. each 4000 MT

Table 4.5

Storage Tanks of NMPT

S. No. Owner/Operator Nos. Total

Capacity Liquid Stored

1. I.O.C. 25 1,22,452 KL Petroleum Products

2. I.M.C. 19 52,000 KL Chemicals/POL

3. I.P.W.C. 8 52,845 KL Molasses, Edible oil/POL

4. Universal Agro Exports 3 12,792 KL Edible oil

5. M.C.F. 1 10,000 T Liquid Ammonia

6. M.C.F. 2 16,000 T Phosphoric Acid

7. Mangalore Impex 6 17,000 T Edible Oil

8. Ultra Tech Cement 3 18,000 T Cement

Table 4.6

Open Stackyard of NMPT

S. No. Type Nos. Total

Capacity 1. Open stackyard with bitumen pavement 2 18164 Sq. m.

2. Open stackyard with bitumen pavement 1 11534 Sq. m.

3. Open Stackyard without bitumen pavement 2 19693 Sq. m.

4. Paved Yard for stacking containers 1 22680 sq.m.

5. Large Open Storage Area near the berths and railway marshalling yard area.


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An Oil Spill Contingency Plan is an important working document

that identifies the oil spill risks, the appropriate response strategies, the

resources required to submit a response and the training and exercises

necessary to ensure practicality and effectiveness of the plan. The purpose

of this document is to provide guidance for the Disaster Management

groups of the New Mangalore Port.

New Mangalore Port Trust

Off-site Emergency Plan

JOINT SECRETARY PORTS MINISTRY OF SHIPPING, RTH

OFF: 011 23711873; RES:011

CHAIRMAN/DY.CHAIRMAN OFF : 2407300 / 2407315 RES : 2407200 / 2407316 MOBILE : 9845121730 /

DISASTER MANAGEMENT

GROUP

PORT FIRE SERVICE

PH: 2407488

ACTION GROUP

S.P. (Addl) OFF:2220503

/2220505 RES: 2220504 / 06

EXPERTS

MUTUAL AID AGENCIES

DEPUTY COMMISSIONER

DAKSHINA KANNADA DISTRICT

OFF:2220588 RES:2220589

(EMERGENCY

COORDINATING OFFICER)

PRESS STATEMENT

SUPDT. OF POLICE

DAKSHINA KANNADA

DIST. OFF:2220503

DIST. MEDICAL OFFICER

OFF:2425138 / 9480015944

AMBULANCE : 102

STATE FIRE SERVICES

OFF:2423333 EMERGENCY:101

OTHER AGENCIES

CHIEF-EMERGENCY CONTROLLER


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Chief Emergency Controller: Chairman

(Alternate: Deputy Chairman)

Responsibilities

To inform the emergency coordinating officer through telephone.

To inform Joint Secretary (Ports) MOST about the emergency.

To inform nearest Police Station.

To instruct concerned department to guide emergency services

inside the boundary limits.

To inform Mutual Aid Agencies listed in the Contingency Plan.

To inform Experts listed in the Contingency Plan.

Gateway to World Markets

Abutting the Arabian Sea, nestled between the Netravati and Gurpur

rivers lays the quaint town of Mangalore. It has been historically a

shipbuilding centre. Being a strategic port it was always under conflict in

the past swarmed over by several varied dynasties. Chroniclers reveal that

vessels from Mangalore port touched the shores of Persia, Greece, Rome

etc. This clearly establishes Mangalore prominence in sea trade due to its

geographical proximity to important shipping routes. Lying south, the

Indian Ocean provides major sea routes connecting the Middle East,

Africa, and East Asia with Europe and the America.

The New Mangalore Port was declared as the 9th Major Port on 4th

May 1974 and was formally inaugurated on 11th January 1975. The


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provisions of Major Port Trusts Act, 1963 were extended to the New

Mangalore Port and a Port Trust Board was formed w.e.f. 1-4-1980. Over

the years the Port has grown from the level of handling less than a lakh

tonnes of cargo to 31.55 million tonnes handled during the year 2010-11.

The Port facilities provided are to face the growing challenges and

emerging needs of the 21st century.

Rail Network

The port provides a railway siding to Mangalore. The railway links

spread into the neighbouring states of Maharashtra, Kerala and Tamilnadu

besides the hinterland. The rail network extends to major industrial cities

like Chennai, Bangalore Coimbatore and Mumbai in addition to numerous

other commercially important cities.

The Hassan - Mangalore line has been converted into a broad gauge

capable of carrying more tonnage of cargo by rail and now the Port is fully

accessible to its hinterland. This broad gauge line made to connect

Bangalore from Manglore and Chennai via Bangalore route is shortened.

The Konkan Railway has given a great fillip to the port / rail interface and

thereby to industrial development in the adjoining regions and direct

connection to Goa and Mumbai.

Road network

The Port is connected with 3 National Highways. The national

highway NH17 passing near the Port. This highway stretches from Kochi


113

to Mumbai linking many important cities and towns in its route. The NH

48 connects directly Mangalore to Bangalore and NH 13 Mangalore-

Sholapur. In addition to the above, four laning of NH from Bantwal to

Surathkal is nearing completion.

Commercial advantages of NMPT

Customer satisfaction is the corner stone around which all our

services are devised. It strives to give them a competitive edge, both today

and in the future.

The congestion free all weather port helps vessels to berth all

through the year.

A secured container yard prevent theft and pilferage and through the

single-window clearance and simplified documentation system cargoes

move in or out at speeds unmatched by any other port.

Table 4.7

Milestones of NMPT

Milestone Dates

Formation of Mangalore Harbour Project 21st Apr. 1962

Declaration of New Mangalore Port as Major Port 4th May 1974

First Ship, M.V.Satsumaru Berthed 10th Jun. 1974

Formal Inauguration of the Port With 3 General Cargo Berths 11th Jan. 1975

Oil Jetty (No.9) Commissioned 12th May 1975

Formation of Port Trust Board 1st Apr. 1980

Commissioning of Iron Ore Berth(Kiocl Jetty) 15th Aug. 1980


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Milestone Dates

Commissioning of Addl.Gen.Cargo Berth(No.5) 1st Feb. 1984

Commissioning of 2nd Addl. Berths(6&7) 7th Nov. 1989

Nmpt Became an Iso 9001:2008 Port 27th Oct. 2003 Nmpt Became the First Major Port In India Accredited With Isps 29th Nov. 2004

Deep Draft Multi Purpose General Cargo Berth Commissioned 14th Feb. 2006

Bio-Metric Attendance System For Cargo Handling Workers Implemented 1st Dec. 2006

Cruise Lounge Commissioned 11th April 2008

Nmpt Got Iso 14001:2004 Certification From Irqs 22nd Feb. 2011

Berth No. 15 Became Operational Dec. 2011

4.14. NMPT OFFERS THE FOLLOWING FACILITIES TO

SATISFY THE EXISTING PORT USERS AND ATTRACT

THE NEW CLIENTS

Quick Turn Round Time

Instant access to 3 National Highways

Instant access to Southern, South-western & Konkan Railways

Easy documentation system

Total computerised system

Concretised road net work system inside the port area

No shortage of gangs

Specialised in handling all type of cargo

Deep draft liquid/general cargo berths

Regular calling of Feeder/Mainline container vessels


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105 T capacity harbour moble cranes operated by private parties

Container Freight Station near the vicinity of the Port

Modern Cruise Lounge

Entire Port operation under CCTV coverage

Vessel Related Charges of NMPT

Table 4.8

Berth Hire charges for occupation of berths where wharf

cranes are not installed

Rate per hour or part thereof per GRT Classification of

the Vessel Foreign going vessel

(in US $/cents)

Coastal Vessel (in Rs.)

Vessel other than oil tanker

All vessels irrespective of GRT

0.17 cents subject to a minimum of US $ 6

0.045 subject to a minimum of

Rs.160.40

Table 4.9

Oil Tankers and Other vessels Rate per hour or part thereof per GRT Classification of the Vessel

Foreign going vessel (in US $/cents)

Coastal Vessel (in Rs.)

(i). Tankers / Oil tankers 0.25 cents subject to a minimum of US $ 4.95

0.067 subject to a minimum of Rs.132.30

(ii). Sailing vessels, Barges, Tugs(Vessels other than steamer and Tankers)

US $ 3.096 Per vessel / hour

82.75 Per vessel/hour

(iii). Fishing vessels/ trawlers US $ 0.495 Per vessel / hour

13.25 Per vessel / hour

(iv). Wooden rowing boat with or without auxiliary engines

US $ 0.24 Per vessel / hour

6.50 Per vessel / hour

(v). Double banking Whenever a vessel is double banked with other vessel occupying a berth, it will be charged 50% of the berth hire specified above.


116

Mother Ships:

If the mother ships are berthed alongside a Wharf, all the charges as

applicable to other Merchant vessels shall be recoverable.

If anchored at outer anchorage, there will be no pilotage fees, berth hire,

mooring charges and tug hire charges

If anchored at inner anchorage, all applicable vessel related

charges excluding berth hire shall be recovered.

Lash Barges:

The berth hire charges shall be levied at the rate of Rs.12.05 per barge

per hour or part thereof for coastal vessel or US $ 0.45 per barge per

hour or part thereof for foreign going during the process of loading and

unloading of cargo.

When the barges wait at the safe fleeting area, they shall be charged at

Rs.4.00 per barge per hour or part thereof for coastal vessel or US $

0.15 per barge per hour or part thereof for a foreign going vessel.

The charges for towing of barge shall be according to the rate

prescribed for tugs or launches, as the case may be.

4.15. PRIORITY BERTHING OR OUSTING PRIORITY

For providing priority berthing to any vessel, a fee equivalent to

berth hire charges for single day (24 hours) or 75% of the berth hire

charges calculated for a total period of actual stay of the vessel at

the berth, whichever is higher, shall be charged.


117

For providing ousting priority berthing to any vessel, a fee

equivalent to berth hire charges for single day (24 hours) or 100% of the

berth hire charges calculated for a total period of actual stay of the vessel

at the berth, whichever is higher, shall be charged.

The fee for according priority /ousting as indicated above shall be

charged from all vessels, except the following categories:

a) Vessels carrying cargo on account of the Ministry of Defence

b) Defence vessels coming on goodwill visits

c) Vessels hired for the purpose of Antartica expedition by the

Department of Ocean Development

d) Any other vessel for which special exemption has been granted

by the Ministry of Shipping

Berth Reservation

(i). A Shipping line requiring advance reservation for a container

ship should give its scheduled arrival of ships at least 3 months

in advance. In the case of other vessels, a minimum notice of 1

month should be given. The shipping line should also intimate

the expected stay of the ship at the berth at the time of asking

for berth reservation.

(ii). A berth reservation equal to berth hire charges for single day (24

hours) or 25% of the berth hire for the expected stay of the ship

at the berth, whichever is higher, will be charged.


118

(iii). If the shipping line does not bring the ship at the pre-reserved

time, then the berth reservation fee paid in advance will be

forfeited.

(iv). Liner ships should arrive within 6 hours of the

commencement of the time reserved for the berths and non-

liner ships should arrive within 24 hours of the time indicated

for arrival of the ship.

Table 4.10

Detention charges of the Vessels in NMPT

Sl. No. Description

Foreign going vessel

(in US $)

Coastal vessel (in

Rs.)

(i).

For cancellation of a requisition for the

services of a Pilot with less than 2

hours notice for pilotage between 0600

hours to 1800 hours or with less than

6 hours notice for pilotage between

1800 hours and 0600 hours

75.00 2005.00

(ii).

For detention of Pilot by a Steamer for

more than 30 minutes beyond the

time or which the requisition was

made

(a). For 1st hour or part thereof

(b). For every subsequent hour or part

thereof.

37.50 31.25

1002.00 835.00


119

Table 4.11

Wharfage Charges of NMPT Sl. No. Bulk Cargo of NMPT Unit Foreign

(in`) Coastal

(in`) 1. (a). Finished Fertilizers

MOP, Urea, DAP, NPK, CAN Ammonia Sulphate and any other Finished fertilizer MT 25.90 15.54

(b). Fertilizer Raw Materials Sulphate/ Rock phosphate MT 29.60 17.76

2. Food Grains and Food Products (a). Rice, Wheat, Maize, Pulses (bags/bulk) MT 29.60 17.76 (b). Sugar, Sugarcandy or Cube MT 29.60 17.76

3. P.O.L. (a). Motor spirit MT 51.80 51.80

1. No export cargo shall be admitted into the port premises without the

permission in writing of the authorised official of the port. Normally

export cargo for a vessel shall be admitted only after the vessel is

opened for export.

2. Wharfage shall be in addition to any charges towards rent for storage

of goods in the quays, warehouses, transit sheds or landing places of

the port of New Mangalore.

3. Request for amendment in import / export applications or documents

shall be accompanied by a fee of Rs.10/- which shall not be

refunded.

4. The cargo/container related charges for all coastal cargo/containers,

other than thermal coal, POL including crude oil, iron ore and iron

ore pellets, should not exceed 60% of the corresponding charges for

normal cargo/container related charges.


120

Table 4.12

Storage Charges of NMPT

Rate per container Per day or part thereof Sl. No. Container Size

Foreign (in US $) Coastal (in Rs)

1. Upto 20’ 0.214 9.53

2. Above 20’ and upto 40’ 0.321 14.30

3. Above 40’ 0.428 19.07 1. One day free period shall be allowed on containers whether

landed/shipped either empty or stuffed.

2. Free period prescribed above excludes Customs notified holidays and

port’s non-working days.

3. The storage charges on abandoned FCL containers/shipper owned

containers shall be levied upto the date of receipt of intimation of

abandonment in writing or 75 days from the date of landing of

container, whichever is earlier subject to the following conditions:

(i). The consignee can issue a letter of abandonment at any time

(ii). If the consignee chooses not to issue such letter of abandonment,

the container Agent/MLO can also issue abandonment letter subject

to the condition that,

(a). the line shall resume custody of container alongwith cargo and

either take back it or remove it from the Port premises; and


121

(b). the line shall pay all port charges accrued on the cargo and

container before resuming custody of the container.

(iii).The container Agent/MLO shall observe the necessary formalities and

bear the cost of transportation and destuffing. In case of their failure to

take such action within the stipulated period, the storage charge on

container shall be continued to be levied till such time all necessary

actions will be taken by the shipping lines for destuffing the cargo.

(iv).Where the container is seized/confiscated by the Custom Authorities

and the same cannot be destuffed within the prescribed time limit of

75 days, the storage charges will cease to apply from the date the

Custom orders for release of the cargo subject to lines observing the

necessary formalities and bearing the cost of transportation and

destuffing. Otherwise, seized/confiscated containers should be

removed by the line/consignee from the Port premises to the Customs

bonded area and in that case the storage charge shall cease to apply

from the date of such removal.

4. Storage charge on container shall not accrue for the period when the

NMPT is not in a position to deliver/ship container when requested by

the user.

5. If operational area is licensed on rental terms to users, storage charge

on containers/demurrage on cargo stored there shall not be levied again.


122

4.16. DEMURRAGE

Exports

Demurrage at the rate of Rs.3.00 per wharfage unit and/or at Rs.3.00

per CBM per day for all cargo charged at Advalorem rate, shall be levied

after the expiry of the free days.

1. Free days

(i). Free days shall exclude the Customs holidays and Port’s non-

working days.

(ii). All cargo except salvaged goods (a) Twenty one days free days

(excluding Customs holiday and Port’s non-working days) from the

actual date of receipt of the goods in the transit area. (b) From the

date the vessel is berthed for working cargo to the date the vessel

completes loading.

(iii). For salvaged goods, three free days (excluding Customs holiday

and Port’s non-working days) from the date on which the goods

were actually salvaged.

2. Shut out cargo

(i). In the case of goods shut out from shipment and if removed outside,

in addition to the free days mentioned in Note 1, the working day

next to the date of completion of taking in of the exports by the

vessel will also be allowed as a free day.


123

(ii). In the case of goods shut out by one vessel and subsequently

shipped by another vessel, the free days shall count from the date of

the first shut out, upto ten days excluding Customs holiday and

Port’s non-working days. The total free period, however, shall not

be more than 21days.

(iii). Cargo intended for export but not actually shipped will be allowed

free days upto only seven days excluding Customs holiday and

Port’s non-working days from the actual date of receipt of the

goods in the transit area.

3. Free Periods

In addition to the free days, prescribed above the periods, that is

periods during which goods are detained by the Collector of Customs for

examinations under Sub section (3) and (4) of Section 17 and for chemical

test under Section 144 of the Customs Act, 1962, other than the ordinary

processes or appraisement and certified by the Collector of Customs to be

not attributable to any fault or negligence on the part of the exporters, plus

one working day shall also be allowed as free period. The Customs

holidays shall also be treated as free periods in addition.

4. Congestion of Goods

If at any time the Port apprehends a serious congestion in the transit

sheds or other spaces allotted for the goods in transit to the detriment of the

rapid transit of goods through the Port, it may direct the owner or


124

consignor or Agents of any specified goods to remove such goods from the

Port premises within a specified period. If the goods are not removed

within such period, Port may cause them to be removed and restacked in

any other place within the Port premises at the expense and the sole risk of

the owner or shipper/agents. Demurrage charges shall be levied on such

goods in accordance with the rate specified for demurrage on export cargo.

5. Transhipment of Goods

The free period shall be allowed for the transhipment cargo up to 28

days excluding Customs holiday and Port’s non-working days from the

date of receipt of the goods.

General Notes:

1. Demurrage charge on both import and export cargo shall not accrue for

the period when the NMPT is not in a position to deliver/ship cargo

when requested by the user.

2. If operational area is licenced on rental terms to users, demurrage

charge on cargo stored there shall not be levied again.

Imports

Demurrage charges at the following rates shall be levied in respect

of all goods left in the port’s transit sheds or open space after the expiry of

the free days and free periods till their delivery is effected.


125

Sl. No.

Classification Unit Rate

1.

Goods lying in the Transit sheds or in the open transit space except on which the rate of wharfage dues is fixed for each or by number.

Per wharfage unit per day

(a) 1st week Rs.3.00

(b) 2nd

weekRs.5.00 (c) Succeeding period

Rs.7.00

2. Goods lying in the transit shed on which wharfage is charged on advalorem basis

Per CBM per day

(a) 1st week Rs.3.00 (b) 2nd weekRs.5.00 (c) Succeeding period

Rs.7.00

Special features of demurrage

1. Free days

(i). Free days prescribed below shall exclude Custom’s holidays and

Port’s non-working days.

(ii). Seven working days (excluding Customs holidays and Port’s non

working days) following the date of the complete discharge of the

goods from the vessel on to jetties, quays or wharves shall be

allowed as free period. When goods are landed from the vessel into

lighters, barges or other floating craft, the seven working days shall

be calculated from the date of complete discharge of goods from

the lighters, barges or other floating craft on the jetties, quays or

wharves.

(iii). In the case of salvaged goods, the free days shall be reckoned from

the day following the date of notification of salvage by the Receiver

or wrecks in the Official Gazette of Karnataka State.


126

2. Free period :

The following free periods shall be allowed in addition to the free

days prescribed above:

(i). Periods during which the goods are detained by the Collector of

Customs for examination under sub-section (3) and (4) of section

144 of the Customs Act 1962 (152 of 1962), other than the ordinary

process of appraisement and certified by the Collector of Customs

to be not attributable to any fault or negligence on the part of

importers, plus one working day. The Customs holidays shall also

be treated as free periods in addition.

(ii). Periods during which the goods are detained by any public Health

Authority whether cleared or destroyed.

3. Survey of Goods

If the goods are detained for survey, then a period not exceeding

seven days excluding Customs holidays and Port’s non-working days, from

the date of completion of discharge from the vessel may be excluded while

calculating the demurrage charges provided the goods are removed within

twenty four hours after the completion of the survey.

4. Empty or partially empty packages.

Demurrage charges shall be payable on packages landed empty or

partially empty.


127

5. Demurrage Charges on Sunday and Port Holidays

Once demurrage charges begin to accrue, no allowance shall be

made for Sundays and port holidays

6. Delivery of Goods

Goods shall not be delivered to owners or consignees unless all dues

leviable thereon, including demurrage charges are paid

7. Congestion of Goods

If at any time the Port apprehends a serious congestion in the

transit area which may affect rapid transit of goods through the Port, it

may direct the owners or consignees of any specified goods to remove

such goods from the port premises within a specified period.

8. If the goods are not removed within a specified period, the Port may

cause them to be removed and restacked in any other place within the

Port premises at the expense and the sole risk of the owner or

consignees. Goods so removed shall be charged demurrage charges at

the rates prescribed in the Schedule of Demurrage (Imports) at (c) in

Sl.No.1 or 2 whichever is applicable.


128

Table 4.13

Operational performance of NMPT

Performance Indicators 2010-11

Total Traffic (In million tonnes) 31.55

No. of vessels handled 1097

Av. Pre-berthing delay (In days) 0.60

Av.Turn Round Time (In days) 2.71

Av.Parcel size (In tonnes) 31,623

Av. Output per berth day (In tonnes) 14,204

Av. Output per hook per shift (In tonnes) 1229

Traffic handled during March 2012

Import traffic during Mar. 2012 : 22.63 Lakh tonnes

Export traffic during Mar. 2012 : 9.12 Lakh tonnes

Total traffic during Mar. 2012 : 31.75 Lakh tonnes

Total traffic during 2011-12 : 329.41 Lakh tonnes

(upto Mar.2012)

Container traffic during Mar. 2012 : 3652 TEUs

Container traffic during 2011-12 : 45,009 TEUs (upto Mar.2012)


129

Traffic handled at NMPT during 2011-12 v/s 2010-11

Table 4.14

Traffic at a Glance (In Lakh tonnes)

Sl. No Name of Commodity 2010-11 2011-12

A. IMPORTS

1 POL (IOC/BPCL) 4.98 4.46

2 Crude Oil (MRPL) 123.92 130.80

3 LPG 19.17 20.74

4 Fertilizer 7.83 8.04

5 Wooden Logs 1.87 2.96

6 Edible Oil 5.64 6.34

7 Coal 28.30 40.21

8 Liquid Ammonia 0.54 0.51

9 Phosphoric Acid 1.78 1.38

10 Cement (Mech) 2.43 2.53

11 Limestone 3.26 0.55

12 Containerised cargo 2.24 2.89

13 Others 4.87 15.43

Total(A) 210.66 236.84

B. EXPORTS

1 POL Products(MRPL) 67.43 66.43

2 Iron Ore Pellets 21.76 17.71

3 Iron Ore Fines 9.39 0.49

4 Granite stone 0.35 0.95

5 Containerised cargo 3.43 3.55

6 Others 2.48 3.43

TOTAL B 104.84 92.56

GRAND TOTAL:A+B: 315.50 329.41


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4.17. AN OVERVIEW OF WAREHOUSING

Indian warehousing sector is expected to grow from US$ 20 billion

in 2007-08 to about US$55 billion by 2010-11, growing at a rate of 35-40

per cent every year. (A report by real estate consultancy firm, Cushman

and Wakefield.)

The Country is pegged around 30 million MT in 2006, out of which

the total storage capacity contributed by State and Central Warehouses is

10.04 million MT and 19.7 million MT respectively. Three public sector

agencies are involved in building large-scale storage and warehousing

capacities in the country. These are the Food Corporation of India (FCI),

Central Warehousing Corporation (CWC) and 17 State Warehousing

Corporations (SWCs). While the FCI uses its warehouses mainly for

storing food grains, the storage capacities with CWC and SWCs are used

for the storage of food grains as well as other items. The FCI has the

largest agricultural warehousing systems with over 24.33 million tonnes

of storage capacity in over 1451 godowns located all over India. This

includes owned as well as hired warehouses. The CWC was founded in

1957 to provide logistics support to the agricultural sector. Currently, it

operates around 514 warehouses across the country with a storage capacity

of 10.27 million tonnes. Other than storage and handling, CWC also offers

services such as disinfestations, pest control, fumigation, clearing and

forwarding, handling and transportation, procurement and distribution.


131

State Warehousing Corporations exist in 17 States to provide

storage facilities and pest control services for various agricultural

commodities belonging to farmers of that State. These warehouses work

under different Warehousing Acts enacted by the respective State

Governments.

Changing utilization trends of storage Capacity:-

The changing utilization trends indicate towards increasing storage

capacity demand from the industries and other businesses while the

demand from the forest and Government departments such as civil supplies

are decreasing.

Major Players:

Public sector

Food Corporation of India

Central Warehousing Corporation

State warehousing Corporation

Private sector

National Bulk handling corporation Ltd.

National collateral Management Services Ltd.

Warehouse is a storage facility that receives goods and products for

the eventual distribution to consumers or other businesses. A warehouse is

also called a distribution centre. Warehousing’s roots go back to the


132

creation of granaries to store food ‘which was historically available for

purchase during times of famine. As European explorers began to create

shipping trade routes with other nations, warehouses grew in importance

for the storage of products and commodities from a far. Ports were the

major location for warehouses

As railroads began to expand travel and transportation, the creation

of rail depots for the storage of materials became necessary. In 1891 the

American warehousemen’s association was organized to challenge the

railroad companies’ control over freight depots.

World war II impacted warehousing in several ways, including the

need to increase the size of warehouses and the need for more mechnized

methods of storing and retrieving the products and materials. As mass

production grew throughout manufacturing, the needs of efficient and

effective warehousing capabilities grew with it. warehousing companies

are now striving to become simply storage facilities. They are transforming

themselves in the third party logistics providers” or “3PLS” that provide a

wide array of services and functions. In addition to packing and staging

facilities offer light manufacturing call centers, labeling and other non-

storage options. The warehousing industry is key component of the

marketing.

Now-a-days competition in warehousing has become extremely

light because business seek warehouse firms with extremely thin margins.


133

Warehouse firms are succeeding by remaining flexible and investing in

technology. Today warehouses are operated in several ways. Public

warehousing involves the client paying a standard fee for the storage of

merchandise, private warehousing is storage and operations controlled

completely by a single manufacturer, leased warehousing is an option for

more stable inventory, contract warehousing clients pay fees regardless of

whether they are using the space or not; the space is always there for them

to use, however, contract and public warehouses receive goods and

products from a multitude of manufacturers and shippers.

Warehousing is of great importance to the fast developing

businesses of today. Warehouses are equipped with cranes, forklifts and

container trucks which are used in loading and unloading cargos.

Warehouses are also furnished with many security features such as

surveillance camera as well as burglar alarm. Important factors influencing

process efficiency in the warehousing environment are layout choices and

the policies by which work routines are controlled.

The principal element of warehousing is order processing which

generally refers to the work flow associated with delivering products

ordered by a customer to a shipping carrier. The main motive for

warehouses and distribution centers is to facilitate the movement of goods

from suppliers to customers while meeting the customers demand in a

timely and cost-effective manner.


134

Warehousing also plays an important role from the supply chain

perspective. Despite all of the integration initiatives, supply chains will

never be so well co-ordinated that warehousing can be completely

eliminated. Warehouses are important for a supply chain because they

provide storage for raw materials, components, work in process, and

finished goods, operate as distribution and order fulfillment centers; and

perform localized and value added warehousing. The tradition role of

warehousing has been associated with holding products in stock, but in

modern days warehousing perform the following roles in a efficient

Manner.

Make-bulk consolidation centers consolidate customer orders

together into one delivery and gain transport economics.

In cross-dock centers, customer orders are satisfied from another

source and just pass through the facility.

Transshipment facilities are used to change transport from large

line-haul vehicles to smaller delivery vehicles.

Assembly facilities are the final configuration of the product to

individual customer requirements can take place.

Product, fulfillment centers responding directly to product orders

from the final consumer.

Returned goods debits, handling unwanted and damaged goods, as

well as goods returning under environmental legislation such as

product recovery and packaging waste.


135

A number of these roles may be associated with the concept of value

added warehousing. The need for a warehousing occurs from the time

interval between the production and utilization of goods.

The following key features of warehousing which make it even

more very important in seaports are:

Warehousing is helpful in storing goods after the demand is less

than the supply along with helps you to release goods when the

interest exceeds the immediate production. It helps us to regulate

supply of goods and also stabilizing prices by harmonizing demand.

Warehouses help to protect the businessmen and their product from

various risks like the loss, fire, theft and damages of goods.

Storage of goods in warehouses is usually covered by insurable.

It provides facility for processing, blending, packing, grading etc of

goods to get sale.

Warehouses issue receipts to the owners for stored goods.

Banks provide loans against warehouse receipts. It is a good security

for bank loan.

In addition to the above Warehouses rendered the following services

to their clients are:


136

Spot Stock

Under spot stocking a selected amount of a firm’s product line is

placed or “spot stocked” in a warehouse to fill customer orders during a

critical marketing period.

Assortment

An assortment warehouse stocks product combinations in

anticipation of customer orders. It may represent multiple products from

different manufacturers or special assortments as specified by customers.

Mixing

In a typical mixing situation truckloads of products are shipped from

manufacturing plants to warehouses. Each large shipment enjoys the lowest

possible transportation rate. Upon arrival at the mixing warehouse, factory

shipments, are unloaded and the desired combination of each product for

each customer or market is selected. When plants are geographically

separated, overall transportations charges and warehouse requirements can

be reduced by mixing.

Production support

Production support warehousing provides a steady supply of

components and materials to assembly plants. Safety stocks on items

purchased from outside vendors may be justified because of long read

times or significant variations in usage. The operation of a production


137

support warehouse is to supply or “feel” processed materials, components,

and subassemblies into the assembly plant in an economic and timely

manner.

Market presence

The market presence factor is based on the perception or belief that

local warehouses can be more responsive to customer needs and offer

quicker delivery than more distant warehouses. The Local warehouse will

enhance market share and potentially increase profitability.

Warehouse operating principles

1. Design criteria

It addresses physical facility characteristics and product movements.

Three factors to be considered in the design process. They are

a) The number of storeys in the facility:

The ideal warehouse design is limited to a single storey so that

product does not have to be moved up and down.

b) Height utilization:

Regardless of facility size, the design should maximize the usage of

the available cubic space by allowing for the greatest use of height on each

floor. Most warehouses have 20 to 30 foot ceilings, although modern

automated and high-rise facilities can effectively use ceiling heights up to

100 feet. Through the use of racking or other hardware, it should be


138

possible to store products up to the building’s ceiling. Maximum effective

warehouse height is limited by the safe lifting capabilities of materials-

handling equipment, such as forklifts.

c) Product flow

Product should be received at one end of the building stored in the

middle and then supplied from the other end. Straight line product flow

minimizes congestion and confusion.

2. Handling Technology

The second principle focuses on the effectiveness and efficiency of

material handing technology. This principle consists of movement

continuity and movement scale economics.

3. Storage plan

Warehouse design should consider product characteristics,

particularly those pertaining to volume, weight and storage, product

volume is the major concern when defining a warehouse storage plan. High

volume. Sales or through put product should e stored in a location that

minimizes the distance it is moved, such as near primary aisles and in low

storage racks. Such location minimized travel distance and the need for

extended lifting. Conversely low volume product can be assigned locations

that are distant from primary aisles or higher up in storage racks.

Similarly, the plan should include a specific strategy for products,

dependent on weight and storage characteristics. Relatively heavy items


139

should be assigned to locations low to the ground to minimise the effort

and risk of heavy lifting.

Bulky or low-density products require extensive storage volume, so

open floor space or high. Level racks can be used for them. On the other

hand, smaller items may require storage shelves or drawers. The integrated

storage plan must consider and address the specific characteristics of each

product.

Categorization of warehouse activities

The basic function of a warehouse is to receive customer orders,

retrieve required items, and finally prepare and ship those items. There are

many ways to organize these operations but the overall process in most

warehouses shares the following common phases (Frazelle, 2002;

Rouwenhorst et al., 2000):

Receiving - the process of unloading, checking quality and

quantity, and dissembling or repacking items for storage

Putaway - defining the appropriate location for items and

transferring them to the specified storage location to wait for

demand

Order picking - retrieving items from their storage locations

and transporting them either to a sorting process or straight to the

shipping area


140

Shipping - inspecting, packing, palletizing and loading items

into a carrier for further delivery

Out of these activities, receiving and putaway belong to the inbound

logistics process which means that they are concerned with the flow of

materials coming into the warehouse. Order picking and shipping, on the

other hand, belong to outbound logistics and are concerned with moving

materials out of the warehouse.


141

Table 4.15

State-wise Storage Capacity of Warehouses in India

(As on 31.01.2007)

(Figures in Lakh MTs) Covered CAP

Hired Zone States / UTs FCI Owned State

Govt. CWC SWC

Private Parties

Total Hired

Total Covered

Owned Hired Total

Grand Total

Total Stocks

Utilisation (% )

Bihar 3.66 0.03 0.5 0.59 0.48 1.6 5.26 0 0 0 5.26 1.71 16

Jharkhand 0.66 0 0.11 0.18 0.23 0.25 1.18 0 0 0 1.18 0.56 33

Orissa 2.93 0 0.48 2.55 0.15 3.18 6.11 0 0 0 6.11 3.08 47

West Bengal 8.64 0.23 0.55 0 0.56 1.34 9.98 0 0 0 0.98 2.62 30

Sikkim 0.1 0.01 0 0 0 0.01 0.11 0 0 0 0.11 0.06 26

East

Total 15.99 0.27 1.64 3.32 1.42 6.65 22.64 0 0 0 22.64 8.03 56

Assam 1.99 0.02 0.1 0.07 0.37 0.56 2.55 0 0 0 2.55 0.8 35

Arunachal Pradesh 0.18 0 0 0 0 0 0.18 0 0 0 0.18 0.02 31

Meghalaya 0.14 0 0.11 0.05 0 0.16 0.3 0 0 0 0.3 0.2 11

Mizoram 0.17 0.01 0 0 0 0.01 0.18 0 0 0 0.18 0.09 90

Tripura 0.22 0.05 0.07 0 0 0.12 0.34 0 0 0 0.34 0.19 50

Manipur 0.2 0.02 0 0 0 0.02 0.22 0 0 0 0.22 0.05 56

North East

Nagaland 0.2 0 0.1 0 0 0.1 0.3 0 0 0 0.3 0.14 23


142

Covered CAP


Govt. CWC SWC

Private Parties

Total Hired

Total Covered

Owned Hired Total

Grand Total

Total Stocks

Utilisation (% )

Total 3.1 0.1 0.38 0.12 0.37 0.97 4.07 0 0 0 4.07 1.49 47

Delhi 3.36 0 0 0 0 0 3.36 0.34 0 0.34 3.7 1.18 27

Haryana 7.7 3.89 1.88 3.99 1 10.76 18.46 3.17 0 3.17 21.63 8.2 32

Himachal Pradesh 0.14 0.06 0.07 0 0 0.13 0.27 0 0 0 0.27 0.21 38

Jammu & Kashmir 0.96 0.15 0 0 0.1 0.25 1.21 0 0 0 1.21 0.78 78

Punjab 21.84 0.02 0.6 32.32 2.71 35.65 57.49 6.33 0.12 6.45 63.94 33.32 64

Chandigarh 0.4 0 0.41 0.21 0 0.62 1.02 0.08 0 0.08 1.1 0.8 52

Rajasthan 7.06 0 0.13 0 0.16 0.29 7.35 1.58 0.19 1.77 9.12 3.74 73

Uttarpradesh 14.96 0.09 1.82 4.04 0.2 6.15 21.11 4.19 0 4.19 25.3 5.8 41

Uttaranchal 0.66 0.1 0.23 0.43 0.05 0.81 1.47 0.09 0.02 0.11 1.58 0.71 23

North

Total 57.08 4.31 5.14 40.99 4.22 54.66 111.74 15.78 0.33 16.11 127.8 54.74 45

Andhra Pradesh 12.73 0 2.39 17.77 0 20.16 32.89 1.97 0 1.97 34.86 16.78 48

Kerala 5.12 0 0 0 0 0 5.12 0.21 0 0.21 5.33 2.21 41

Karnataka 3.73 0 0.38 0.44 0 0.82 4.55 1.37 0 1.37 5.92 2.17 37

South

Tamilnadu 5.83 0 0.8 0.33 0 1.13 6.96 0.6 0 0.6 7.56 4.52 65


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Covered CAP


Govt. CWC SWC

Private Parties

Total Hired

Total Covered

Owned Hired Total

Grand Total

Total Stocks

Utilisation (% )

Pondicherry 0.42 0 0 0.02 0 0.02 0.44 0.08 0 0.08 0.52 0.19 37

Total 27.83 0 3.57 18.56 0 22.13 49.96 4.23 0 4.23 54.19 25.87 48

Gujarat 5 0.14 0.42 0 0 0.56 5.56 0.49 0 0.49 6.05 3.56 59

Maharashtra 11.77 0.26 0.75 0.96 0.49 2.46 14.23 1.42 0 1.42 15.65 5.46 35

Goa 0.15 0 0 0 0 0 0.15 0 0 0 0.15 0.05 33

Madhyapradesh 3.37 0 0.5 0.75 0.37 1.62 4.99 0.36 0 0.36 5.35 3.66 68

Chhattisgarh 5.12 0.03 0.26 1.97 0.05 1.31 6.43 0.05 8.57 8.62 15.05 12.93 86

South West

Total 25.41 0.43 1.93 2.68 0.91 5.95 31.36 2.32 8.57 10.89 42.25 25.66 61

India 129.41 5.11 12.66 65.67 6.92 90.36 219.77 22.33 8.9 312.3 251 115.79 46

Source: www.indiastat.com


144

Warehouse resources

Typical issues involved in designing and performing warehouse

processes include allocating resources in terms of costs and capacity. When

looking at the value of a product or service, the goal is to have the value of

the end-product exceed the cost of producing it. Identifying the value

added activities inside the warehousing process is an essential but

demanding task. Basically, the value assessment is made by examining

each activity within the process and defining its criticality to operations.

The cost of the product or service includes all resources used to produce it

(e.g. raw materials, labour, storage space, transportation, equipment).

According to a classification by Rouwenhorst et al. (2000), it is possible to

identify the following list of distinguishable warehouse resources:

Storage units - Used for the storage of products e.g. pallets,

trays, boxes

Storage systems - May range from simple shelves up to

automated cranes and conveyors

Pick equipment - Used for the retrieval of items from the

storage system e.g. standard forklifts, reach trucks, pallet trucks

Auxiliaries - Equipment, such as barcode scanners, that support

warehouse activities

Computer systems - Enable computer control of processes


145

Material handling equipment - Equipment for preparing

retrieved items e.g. sorter systems, palletizers, truck loaders

Personnel - Human resources that operate and control all of the

pre-described resources

Warehouse resources normally represent a sizeable capital

investment. Approximately 50 percent of the costs in a typical warehouse

are labour-related facilities; machinery and storage equipment represent

smaller portions of the investment (Aminoff et al., 2002). Reducing the

amount of labour or pursuing higher labour productivity can be seen as a

means to lowering warehouse operating costs. This is typically done by

investing in expensive warehouse technologies. However, to obtain an

acceptable rate of return on equipment investments, they must be selected

and used properly.

Warehouse technologies

Many developments in the warehouse efficiency have been made

possible due to the advances in warehouse technologies. It is useful to

think of warehouse technologies consisting of two elements. The first

element involves the use of computers for planning and directing activities.

The second is the degree of mechanization or automation. Naturally, the

goal of automating warehousing operations is to enhance efficiency of

material handling through reduction of labour costs and increased

throughput. The evolution of systems created for warehousing is not very


146

different from many other technology solutions in the sense that most of

them are based on few core functionalities on top of which developers have

started to add small features that they have seen as valuable for

accomplishing specific tasks.

Hence, warehouses must be designed to accommodate the loads of

materials to be stored, the associated trucking in receiving and shipping

operations, and the needs of the operating personnel. The design of the

warehouse, space should be planned to best accommodate business service

requirements and the products to be stored and handled. The economics of

modern commercial warehouses also dictate that goods are processed in

minimal turn around time.

4.18. CONCLUSION

The profile of the NMPT’s vessel traffic and warehouse

management provides port user with high level of satisfaction through

rendering quick, economical, safe, reliable and efficient services. After

liberalisation period, the top management had concentrated to implement

special facilities to handle the vessel traffic efficiently. It also adopts a

progressive HR management policy through training and motivating by

educating and working conditions level for cargo handling workers / union.

The NMPT has been ever responsive to the changing needs of maritime

trade through practicing immediate attendance to ship berth on arrival.

Round the clock service is offered in the NMPT for all kinds of services at


147

delivery of FCL containers, direct delivery of cargo from hook point and

receipt of export cargoes. But, it also possess certain weaknesses that its

infrastructure is designed to allow ships to maximise length overall (LOA)

245m. This implies in general that ships Over Dead Weight tonnage

(DWT) 1,00,000 cannot be handled in port due to navigational constraints

and the channel depth and width.

Cargo’s handling for certain dry bulk, cargoes (Iron ore and Coal)

are still done manually which results in high turn around time for ships.

This creates subsequently high cost of transport to shippers of goods. The

manual handling also results in unsafe and environment unfriendly effects

such as cargo spills and dust.


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