sooryash final report shashi
TRANSCRIPT
CHAPTER 1: INTRODUCTION
1.1General Introduction
The maritime fleet of the Islamic Republic of Iran Shipping Lines (IRISL Group) comprises
115 ocean-going vessels with the total capacity of 3.3 million tons deadweight (DWT). The
ownership structure of the fleet comprises 87 ocean-going vessels in IRISL and 28 different
types of ships under the flag of subsidiaries, including Khazar Shipping, Valfajr as well as Iran-
India Shipping Companies. They are manned by 6,000 Iranian personnel including shore staff,
masters, deck and engine officers as well as ratings, who work under the flag of the Islamic
Republic of Iran in the Caspian Sea, Persian Gulf, international waters and various ports of the
world.
1.2 Objectives of the study
1. Understanding the concept of Shahid Rajaee Port with respect to competitors.
2. Working process of different department.
3. Relationship between employees and employers.
4. Traders approach towards Shahid Rajaee Port
.5. Developing and maintaining excellent communication throughout all sectors of the industry.
6. SWOT analysis of entire organization
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7. Understanding various Policies & Procedures of organization
8. Understanding Intra Trade and international trade activity of Shahid Rajaee
9. Interacting with various departments of organization
10. Understanding various structures of different department
1.3 Industrial Background of the Study
1.3.a Origin of the Industry
Due to the increase in the volume of imports into Iran since early 1960, consequence of which
was to employ many foreign flag vessels to trade within Iranian ports caused some concerns to
the country. In addition, the need and importance of a regular carriage of goods by sea and
considering peculiar geographical characteristic, accessibility to open seas, with having had long
water boundary and water ways to and from Iran made the necessity in initiating a research study
to establish the first and biggest integrated national shipping lines. The result of the research
study, which was started in 1961, was approved by the first general assembly meeting to
establish Iranian National Shipping Company on August 1967 with the name of Aria Shipping
Lines.
Aria Shipping started its activity in 1967 by two small size vessels with capacity of 1000 and
1550 tones in Persian Gulf area and 4 ocean going vessels, namely, Aria Sep, Aria Far, Aria Naz
and Aria Gaam with the total capacity of 61,252 tones that had been put into service between the
Persian gulf-Europe, Asia and America. By the end of 1978 the number of Aria shipping vessels
was 42 with the total capacity of 525,000 DWT which proved the increasing of the sea
transportation volume by Aria shipping lines and its effective role in Iran economy.
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After the Islamic Revolution and change of economical and political policy on January 5, 1979,
the authority renamed the Aria Shipping to Islamic Republic of Iran Shipping Lines (IRISL) and
affiliated the company to the ministry of commerce.
During the Iran Iraq War, numerous vessels such as Aria Boom, Aria Jahan, Aria Shaad, Aria
Omid, became total losses due to missile attacks, as a result of which, the IRISL suffered dearly.
After this period, the names of all the vessels were changed to those of martyrs and cities - with
the prefix "IRAN".
However since American sanctions (over Iran's support for various groups and Peaceful nuclear
program) have begun to hinder IRISL has taken to quickly renaming its ships under shell
companies in order to continue trading in banned goods
The International Maritime Organization has 140 member states with Iran ranking among the top
20. Iran plans to add 16 cargo ships to its naval fleet by mid-March 2010 to increase the total
capacity to 5.8 million deadweight tons. The number of cargo ships in 2009 has reached 154,
from 138 in 2008.
IRISL Fleet (2009)
Type of Vessel No. of Vessels Capacity DWT Capacity TEU
Bulk Carrier 46 2,299,749 -
Container Carrier 11 409,194 30,848
General Cargo Carrier 15 272,192 5,233
Multi Purpose Carrier 15 349,086 8,127
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Tanker 3 119,676 -
Total: 90 3,449,897 44,208
1.3.b Growth and Development of the Industry
Negotiations for building six 75,000 DWT Panamax bulk carriers and 10 Handymax bulk
carriers with the capacity of 53,000 DWT have been finalized with Iran Shipbuilding & Offshore
Industries Complex Co. (ISOICO) and SADRA shipyards respectively and if the prices are
finalized, total value of contracts signed with domestic shipyards will surpass $600 million.
To support domestic industries, manufacturing containers inside the country has been
encouraged. The first such contract, worth $10 million, was signed in 2001. It called for the
production of 5,000 Twenty-foot equivalent units (TEU) worth of containers and, so far, 1,600
containers have been delivered. As per IRISL's director, Iran needs to purchase or build 40
vessels by 2009. Over the next two decades, Iran would also need 500 new ships, including 120
oil tankers, 40 liquefied natural gas (LNG) carriers and over 300 commercial vessels. In 2009, in
a move aimed at further enhancing Iran's shipbuilding industry, President Mahmoud
Ahmadinejad said he will ban the purchase of foreign ships by Iranian organizations. Moreover,
various kinds of industrial lubricants have been produced by Pars Oil Company as well as
Behran Oil and, at present, about 70% of the lubricant needed by the fleet is supplied
domestically.
In October 2006, a new company has been established in the southern port city of Bandar Abbas
to repair various types of ocean liners. According to ISNA, the Bandar Abbas Pars Ship
Repairing Company has been formed jointly by IRISL and ISOICO. The plant has the capacity
to carry out maintenance works on large vessels with 500,000-ton capacity.4
In addition, profitability of the company has been on the rise despite elimination of state
subsidies as a result of adopting a cost management, planned maintenance strategy, so that, the
company’s net loss which amounted to $15 million in 1999 has been turned around to more than
$150 million profits during the 2003-2004 fiscal year. According to the article 44(C) of the
Iranian Constitution, IRISL is ready for privatization.
Shahid Rajaei Port has hiked 10 spots in world ports rankings thanks to careful planning and
efficient services rendered by the port, Director General of Hormuzgan's Ports and Shipping
Organization Ali Akbar Safaei said on Sunday.
"This spring, 608,371 twenty-foot equivalent units (TEU) container ships unloaded at Shahid
Rajaei Port, which marks a 31 percent increase compared to the corresponding figure of 2009-
2010. Given the comprehensive plans which have been made at this port, we hope that this
increasing trend continues and by the year's end the record high figure of 2.8 million TEU
container ships will be accomplished," he added, Mehr News Agency reported.
The twenty-foot equivalent unit or TEU is an inexact unit of cargo capacity often used to
describe the capacity of container ships and container terminals. It is based on the volume of a
20-foot long intermodal container, a standard-sized metal box which can be easily transferred
between different modes of transportation, such as ships, trains and trucks.
Safaei recalled that the level of unloading at the port during spring was over 17 million tons,
which marks a 17 percent rise compared to the previous year. "In the same time span, some
4.980 million tons of non-oil products were exported via the port, which marks a growth of 98
percent. In the corresponding period of 2009-2010 the figure stood at 2.509 million tons.
Moreover, in the same period imports of non-oil products via the port reached 4.511 million tons.
It should also be recalled that in the same duration transit of non-oil products via the port
increased by 74 percent and hit 494,911 tons," he noted.
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Safei said during the first quarter of 2010-2011, around 950,122 tons of cargo was transshipped
via Shahid Rajaei Port, marking a 46 percent increase compared to the corresponding period of
2009-2010. "In the period between March 21-June 21, some 6.183 million tons of oil products
were unloaded and loaded at this port, which shows a 12 percent reduction compared to the
corresponding period of the last year. Transit of oil products in the same time span stood at
58,492 tons, which reveals no changed compared to the respective period of 2009-2010,"
1.3.c Present Status of the Industry
The Ports and shipping organization is a government agency under the authority of the Ministry
of Roads and Transportation, with responsibility for supervising maritime trade and the operation
of commercial ports and shipping in Iranian waters.
Marine transport is greatly dependent on auxiliary capacities and facilities including ports, roads,
railroad and so on. Therefore, the port and shipping organization of Iran agreed to award
management contracts for operations of container terminals in Bandar Khorramshahr and Bandar
Imam Khomeini to a subsidiary of IRISL (IRISL Port) in 2004. In addition, according to an
agreement with the Islamic Republic of Iran Railways, a joint company was established to
launch an express container line from southern Iranian ports to major destinations inside the
country, as well as to CIS countries. These measures were in line with the long-term policy of
the government to develop the transit sector and activate North-South Transit Corridor. All port
terminals are currently run by private companies.
1.3.d Future of the Industry
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The facts and figures for this spring suggest that some 1.069 million tons of oil products were
imported via the port, which hints at a two percent decrease compared to the spring of last year.
Meanwhile, a port and shipping official said on Sunday Shahid Rajaei Port is the best choice for
rendering port-related services in the Persian Gulf. Over half a century has elapsed since this port
started its activities and today we are witness to its growth and development in various sectors
and the impact of this important port on gross national product (GNP) as the hub of economic
activities of the country. Shahid Rajaei Port should become the hub of port and shipping services
in the Persian Gulf while today we observe that ports such as Jebbel Ali are basic ports in the
Persian Gulf region. Shahid Rajaei Port is on the verge of becoming a third generation port of the
world. Third generation ports are ports in which the issue of commercial activities is at stake in
addition to unloading and loading cargo and producing goods, the port accounts for over 90
percent of unloading and loading of container vessels in the country.
To expedite the port development to become a third generation port, the issues of logistics,
commercial services and rendering services at suitable prices.
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CHAPTER 2: PROFILE OF THE ORZANIZATION
2.1 Origin of the Organization
Adibi – Hearis counsolers for the first time, moved many goods in Iran, considered the Shahid
Rajaie port, which is, in the complete design of Iran’s commercial ports. Administrative
operations of the Shahid Rajaie port were started as part of main and basic developmental
programs in 1975. The port started its activities again after revolution in 1981 and developed its
operations in the imposed war. The Shahid Rajaie port played an important role to supply Iran's
needs in the imposed war. The first terminal of the port was exploited and loading / evacuation
operations started in 1984.
The port construction was completed and a container terminal was made which is equipped to a
computer system in 1985. Buildings, storages, spaces and other terminals were constructed to
develop activities in 1986. The first related affairs to a whole development program of the port
were started in 2001. It causes to increase port spaces and goods displacement capacity from 1.5
million TEU to 6 million TEU. First phase of the port spaces development was started in 2004.
The first part of the container terminal was started in 2005 too.
With a view to description of port climatic condition, the statistic of year 43 of Bandar Abbas
erology station is utilized. Supplementary data related to climatic region is indicated in table 2-
1.In the main, the lack of glacial days and few rainfall are climatic basic specification of this
region. The average of water surface temperature in Persian gulf have oscillated in different
periods between 20 oC(Esfand/ February) and 32 oC (Mordad/ August) and the annual average
water surface temperature is measured within 27 oC. The saltiness of surface waters in close of
Persian Gulf inlet was almost 6/36 gram in liter and the maximum of saltiness in southern coasts
is within 41 gram in liter. The done studies regarding the erosion of steel candles in Persian gulf
(United Arab Emirates and Kuwait) is shown that moderately, erosion rate in flood division is
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14/0 millimeter annually and therefore, the mean of erosion in other division can be equivalent
with 7/0 millimeter in the year.
Shahid Rajaee Port complex situate in Hormozgan State in 23 kilometer of west of Bandar
Abbas. This port situate in 560 geographical longitude and 4' eastern and 270 geographical latitude
and 7' northern in north of Qeshm Island and Hormoz neck. Port complex has about 25 square
kilometers area that from this extent 5/7 square kilometers is patronage land for development
plans and use of private sector.
Shahid Rajaei port allocate maximum of depletion operation share/ goods loading to self in
Islamic Republic Iran. First port terminal has opened and depletion operation and loading to
acceptable extent has started since (August 1984), this port has played an important role and
growing in country ports system especially in relation to containerize operation.
Containerize terminal of Shahid Rajaei port as biggest and more advanced country containerize
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terminal with operations range of 2/1 million TEU in 2005 is port heart. Besides of containerize
operations, acceptable dimension of replacement operation of social goods (especially steel
products), dry material (Cereal and hematite), liquid material (Inedible oils) and petroleum
products fulfill in this port. In addition, port has limited activities in depletion base/ automotive
loading.
In recent years, ports and shipping organization for submit of future raising demand, has invested
about 600 American million dollars for expansion of Shahid Rajaei port which this capital will
be spent for build of a new and big containerize terminal (start date of phase 1 schedule in end of
year 2006). Development of big post - edge lands, build of new gates for port that it is a creation
of railway maneuver enclosure etc.
Shahid Rajaei Port complex situate in Hormozgan State in 23 kilometer of Bandar Abbas west.
Geographical condition of this area in 560 geographical longitude and 4' eastern and 270
geographical latitude and 7' northern has situated in north of Qeshm Island and Hormoz neck.
The space of this area is 25 square kilometer that further 5/7 square kilometer can add to that.
The enclosure of Shahid Rajaei port finites to anhydride arid lands and Keshar Mountains from
north and on all sides’ finites to channels which directed the floods of this desert. Having the
singular geographical condition, access to international open waters via Persian Gulf, connection
to road and rail international net, approaching to Kish open area, Qeshm and Persian Gulf area
ports, and use of installation and modern equipments, Shahid Rajaei port complex is converted to
strategic and singular place. In connection to sea condition, this port is in safeguard of Qeshm
Island and immune of long waves of Oman Sea and Persian Gulf.
Port situation
The Shahid Rajaie port was announced as a special economical region in 2/28/1997. Free regions
of Iran were made according to the note No.19 of the first program of development (1989-1993).
Some regions are announced as special economical regions based on the note No.25 of the
second program of development (1994-1999). Main purpose of special economical regions
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creation is economical development promotion of the region by investor companies for
unemployment reduction and technology transfer.
Regulations of special economical regions
Benefits special economical regions
Possibility of goods export without commercial
and custom duties to the special regionIt exists in the special region
To free of duties in order to facilitate
constructed goods import to Iran
It includes goods which are constructed in the
special region too
Possibility of transit and re export It doesn't exist in the special region
Selling and rent of landsIranian citizens can sell and rent lands but
foreign citizens just can rent lands
Possibility of investment and inner and outer
relationsIt is possible
To warrant exterior investment in order to
issue permit
The permit is issued according to regulations
and laws
Administrative regulations for permit issuanceIt is done according to regulations of the
special region
Affairs of foreign exchange, banking and
financial affairsIt is done according to Iran's regulation
Labor laws and regulation, social insurance It is done according to Iran's regulation
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about employment of foreign citizens
Retail sales It is permitted for Iranian and foreign citizens
Visa regulation for foreign citizens According to Iran's regulations
Furthermore, according to consultants, storekeeping tariff of the free region is different to the
port official tariff which is announced by the shipping and ports organization (refers to chapter
5). Storekeeping tariff (obsolete goods) of special economical regions is less than the port
common tariff and tariff discount is given after 45 days. All goods which have a lading to
destination of the free region or special commercial regions, are enjoyed this prerogative.
This law is approved in order to store governmental goods in the port cheaply. Due to budget
policies of government, some governmental companies import necessary goods wholesale. These
companies store goods in the port because of lack of storekeeping facilities. Thus, a cheap
storekeeping tariff is approved for ports which are protected by the special economical region.
According to consultant’s observations, the obsolete goods law affects the port situation a lot and
led to highest pause time of goods (especially containers) in the port. It causes to decreases the
port capacity too. Actually the port is got a big storage instead of a goods passage. Development
projects of the port and the especial economical region should be considered. On the other hand,
positive effects of special regulations on industries development and commercial activities have
not been seen yet.
Powers of the shipping and ports organization are limit in this regard because tariffs of special
economical and free regions are approved by super council. Anyway, the port's director general
is responsible of the especial commercial region.
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2.2 Growth and Development of the Organization
In past years, Shahid Rajaei port has witnessed continual growth in volume of displaced good. In
this relation, traffic of ships and traffic of truck and trains increase between port and inside of
country considerably. To Predict that this process will continue at a later.
Good volume Unit 2005 2009 2010
Cereal Ton 168،665 728،000 1،032،000
Dry material
(inedible)Ton 7،109،386 8،972،000 12،968،000
liquid material Ton 671،269 1،200،000 1،700،000
Steel products Ton 1،298،831 1،508،061 2،890،782
Other social goods Ton 1،256،451 1،144،388 840،517
Oil Ton 24،233،449 29،470،000 32،900،000
Containerize(unlike
of restituted)Box 569،395 1،446،333 2،774،035
Encysted goods Ton 1،391،820 1،547،551 2،268،701
Afloat type Unit 2005 2009 205
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Barge and Shore
planeNumber 618 677 779
Containerize ship Number 1038 1467 2111
carrier Ships of dry
material Number 756 966 1288
Carrier ship of
automotive(Ro Ro)Number 92 121 142
Passenger ship Number 1 0 0
Refrigerator ships Number 3 9 19
Miscellaneous
shipsNumber 44 46 49
Tank non- oil ships Number 76 96 127
tanker Number 508 561 592
Post- edge
trafficUnit 2005 2009 2015
Number of
truck in yearNumber 1،487،000 2،216،000 3،414،000
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With analogy of actual physical condition of Shahid Rajaei port and foresighted good growth,
have prospected that important capacity restrictions will disclose more in relation to
displacement of dry material and hematite in next year’s.
2.3 Vision, Mission and Goals of the Organization
Our missions;
By 50 years record in port and marine services, meet Port consent in different fields of
marine and port industry and also development new and modern science relates to port
activities and acquire confidence of shipping lines and consignees, all over the world.
Our visions;
Our consideration based upon achieving pioneer and top rank amount most companies in
marine and port business demands great and effective presence in international areas and
overseas projects all over the world.
Our values;
Our values could be deemed as honesty, trustworthy, liability, politeness, having good
manner of business, respectfulness, team work, enforce the regulations, attention to health
and convenience of staff and protect the nature and environment.
Goals of the Organization:
To manage port affairs and to increase capacity of the port and sea operations in Hormozgan
province.
To control affairs of coastal and commercial shipping in ports of Hormozgan
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To control commercial floats entrance to Hormozgan's ports, to increase floats safety and to
prevent sea pollutions.
To record float units, to issue operational and voyages permits and sailing certificates.
To perform evacuation, loading and storekeeping operations- port services, goods and
containers transportation in the port regions.
To supply installations for goods transit by sea paths to middle east and neighbor countries.
To supply necessary conditions to assign exploitation right of administrative and commercial
activities to private parts.
To collect port rights and dues, storekeeping and goods transfer wages in Hormozgan's ports.
To organize affairs of the special protected region or protected regions of Hormozgan.
To control evacuation and separation demands of goods.
To control operations of Hormozgan's ports and especial wharfs to increase efficiency.
To perform commercial models gradually
To control contractors operation in order to perform contents of signature contracts.
To investigate affairs of efficiency use of investments, to keep and repair equipments, floats
and port installations.
To investigate safety affairs and to protect goods
To perform policies, strategies, regulations and laws which they are related to current affairs
of the port, by the shipping and ports organization.
To advance acknowledgment and technical experiments of human resources in Hormozgan's
ports.
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2.4 Present status and Future of the Organization
Because the Shahid Rajaie port is near free water, it accesses to other parts of the world by
shipping ways of the Hormoz strait. To develop commercial and economical among Iran and
other countries, some sea transportation paths should be created from the Shahid Rajaie port to
south banks of Persian Gulf, African and Asia east countries. Now, the Shahid Rajaie port relates
to 80 international ports by sea. This port is done most commercial activities and goods transit to
Middle East countries. Some sea paths are:
Form Bandar Abbas to Sharjah (inner relations in Persian Gulf), From Bandar Abbas to Dubai
(relation with Europe, Asia and Amercia), from Bandar Abbas to Masghat , from Bandar Abbas
to Karachi and from Bandar Abbas to other ports of Iran. Figure 2-6 shows the port location
among other international ports.
The Shahid Rajaie port is connected to the network of Iran paths by some main paths. The most
important path which is ended to the port is the 1330 kilometer long path form Bandar Abbas-
Sirjan- Tehran. It is the shortest path from Bandar Abbas to Tehran. Distance of the Shahid
Rajaie port to Bandar Abbias is 23 kilometers. This path is situated between Bandar Abbas to
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Bandar Length. It was changed to a 4 ways highway last year. The accessibility path is the most
important way in Bandar Abbas which is extended from east to west. Table 2-6 shows location
of the Shahid Rajaie port among the Iran's highway network and the Asia highway system.
The Shahid Rajaie port is connected to the overall railway network by the 630 kilometer long
railway of Bafgh- Tehran. The railway is increased transportation and social- economical
activities. Most transportation of commercial buildings of the region is done by this rail network.
Table 2-7 shows location of the Shahid Rajaie port in the overall railway network. Among four
regions which are controlled by the protection building of environment, protected regions of
HARA, HARA TIAB and MINAB are the nearest places to the port. The HARA region is
considered as a protected region according to quadruple classification of the environment. This
region is put in the international sea list of Anzali conventions and Bio- Safari resources. There
is a high sensitivity about this region so all affairs should be done carefully in the port.
Accessible channel and also the extent of port basins and status of break waterها declares
suitable for port. For the new containerize terminal of Shahid Rajaei port, the model ship will
have length 400m. Therefore, you need to know for certain that the port condition among canals
and circuit basins dimensions and also the instruction level of ship leaders will be made possible
to accepting the ships with this extent. The problem have important completely, is the depth of
all inlet head and port enclosures. You need to know for certain that the depths are adequate for
all of predicted float.
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2.5 Organizational Structure and Organization Chart
Organizational Chart
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Space of the Shahid Rajaie port is about 25 KM which 7.5 KM of it, is support lands and are
considered to develop designs and use private parts. Main areas of the port are divided to 7
groups based on their activities:
1. terminals
2. buildings
3. storages
4. open areas
5. wharfs
6. wave breakers
7. inner communication paths
8.
Table (1-1). A review of the Shahid Rajaie port
Description Storages Area (sq meter) Comments
Terminals No. 1&2 5 43250Common goods and heavy parts of
industrial centers
Terminals No. 3&4 3 25950 Industrial, heavy and big parts
The terminal of dangerous
goods1 8650 Dangerous export and import goods
The transit terminal 1 5650 Common goods
The export terminal 2 17300 Non oil goods export
The container terminal 1 8650Distribution and transportation
stations of the Container CFS
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The terminal of oil liquids Raw materials and vegetable oil
The terminal of grain and non
mental mineral materials
Grains and non mental mineral
materials
Blue Print of the Port
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2.6 SWOT Analysis of the Organization
STRENGTHS:
Biggest Port in IRAN.
Good Airways & Railways Transportation
facilities to Port.
Huge Terminalsآ
Huge containers to store Goods
WEAKNESS:
Constructions delay
Poor HR Management
Weak Marketing of spaces
Periodical Change in Top Executives
OPPORTUNITIES:
Wide untapped clients
Increase in Port transportation
Privatization of Ports
Increasing Traffic
THREATS:
More Competition from other ports
Iran & Iraq War
Changing Government rules
Climatic Changes
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CHAPTER 3: DETAILED STUDY OF THE DEPARTMENT
Overview:
Increase the primitive efficiency
Increase the main efficiency Efficiency increase maximum
Management and equipment office
instruct the contractors and personnel/ equipments purchase/ and guideline’s equipments purchase
Management system of life cycle among preparation, supervision, preservation and organization
Transport of guideline equipments in private sector with make a loan instead of rent
Port tariff Increase tariff transparency namely, accessibility via internet, preparation of tariff book which include entire item and exposure of that English copy
Second structure precisely/omit of some cases(as, port law for good) and also decrease of exemptions
Tariff freedom for contractor for displacement rates of good/ warehousing tariff
Financial system Definition of cost center, and doing of cost centre calculation
Profit center calculation, encouragers of profit center for increase of efficiency, modern software’s utilization of data processing for example, SAP
Increase of ports financial freedom
Investment instruct the ports organization employees for move to project management and control of project management
More attention to operational aspects/ logistical planning by way of reclamation engineering division(big projects of terminal development are based on logistical/ information technology) and international knowledge utilization
Establish tenders dependent on EPC contracts/ BOT contract based on clear and explicit laws for assignment of contract to tender bidder
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Organizational structures
Renewal of organizational structure in port with integration of several offices and liabilities and create of new offices, decrease of strong hierarchical organization via aid/supervisory mechanisms
Start up second organization implication and move to task merely hosting
More freedom of port, displacement of central planning mechanism with management based on commercial stimulus’s in ports, inaugurate the port area upon universal society
Marketing Prevision of marketing office in organizational structure with suitable budget for that
Start up ports marketing at international level by help of instructed personnel and proper sources
Implementation of commercial port structure with economical action /operation
IT system Start up the system of call management/ preservation of central data between marketing offices and IT
Increase of systems integration in port area and also ports and central staff of ports and shipping organization
International Tender of IT systems, especially in relation to operation and preservation systems (for Shahid rajaei port access to proper system of containerize terminal....)
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3.1 Human Resource Department
Human resource Structure
The shipping and ports headquarter of Hormozgan which is controlled by the Shahid Rajaie port,
has 4 branches and some units and the director general manages them. The organizational chart
of headquarter and its main duties and organizational posts were approved by administrative
affairs and employment organization in 1999 and executed in 2001.
Main posts of port
Table (3-3). Main posts of Shahid Rajaie port
Designation Duties
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Director
general of
port
- To control subset units, to manage deputies and other authorities in order
to optimize administrative, financial, technical, operational, fire fighting
and guarding affairs
- To equip programs and to regulate duties among parts, offices and subset
units
- To issue necessary instructions in order to manage technical, financial,
administrative, sea and port operations
- To coordinate relevant activities to different departments
- To control sanctioned budget execution and costs of execution of
imparted and administrative designs
- To control propagation of transportation contracts of commercial goods
and shipping and to determine necessary strategies and suitable ways in
order to accelerate goods transportation and increase goods exchanges
- To control serviceable execution of common strategy of organization in
port and control of imparted instructions, bylaws, authorizations, circulars
and regulations execution
- Technical and operational, administrative and financial planning and to
guide port affairs based on sanctioned budget, economical and
organization strategies, common policy of government
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Deputy of
port and sea
operations
- To control in order to secure floats traffic and stopping in canals and side
wharfs
- To control operational affairs, operations of electrical, telecommunication
and networks posts in the sea and drought
- To control operations and training of ships guides in order to guide floats
from international water to side wharfs and their berths
- To control operations of loading/evacuation, storekeeping and goods
transportation, execution of evacuation/loading and shipping contracts
-
Safety organization of port
According to Iran regulations, the commercial and industrial centers including more than 25
employees obligates in creation of job health center. Safety and health centers in Iran ports has
established on these base. Safety and healthy centers of Shahid Rajaei port is one of financial and
official department subgroups and includes 10 personnel for presentation the services to port
employees. In close future, the fire fighting center also will become one of these office subsets.
The prime duty of this center consists of:
The job health and safety: healthy inspection and warehouses, installation and piers safety
and controlling the suitable utilization of individual safety instruments, completing the
healthy and safety checklists, controlling the contaminants, filling the accidents form and
analysis it.
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The environment health: controlling and studying several divisions, spray, emergency
services, presenting the medical services
Public health and instruction: presenting the solution for omitting the contaminant, informing
about the health and safety problems, instructing the safety and health problem.
For contrast and control of fire outbreak, 3 fire fighting station are at Shahid Rajaei port which
these are equipped to special machines and relevant equipment. These fire fighting stations
includes one central station, one station adjacent to gas pump and one station close to the
warehouse of chemical containers. In this port, fire fighting stations includes 130 conventional
and formal employees for presenting the services in 24 hours. Fire fighting office intends to will
divide in close futures. Sea division resolved that manages by the safety center of channel and
the dryness division by safety and health center.
3-8 – port safety
In some years ago, the importance of port safety observations has grown considerably, in voyage
world. For safety convulsive situation of the world that has indicated with great number of
terrorist attacks losses in all over the world to governmental and private installation, international
voyage organization has been adopted the actions for preservation purpose of such attacks. The
new conditions have been adopted in relation to sea security in diplomatic conference of
international voyage organization in December 2002. The SOLAS riders 74/78 (chapter xi-2)
and ISPS regulation executed in initial July 2004 that requires the adoption of complex set of
actions. According to regulation conditions, ISPS should be warranted by the whole ports have
commercial intercommunications with the ports ISPS certificate holder. Besides conformity with
international regulations, a port useful security organization includes other advantages as:
Keeping of port installation
Decreasing the damages due to good robbery
The better marketing reasoning
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Since doings the ISPS regulations, the security act origination develops and changes continually.
The aim of this act origination set the whole supply chain at international regulation framework
and creating the relevant supervision methods among performing these duties in civic release
process and port governmental controls.
In Iran and Shahid Rajaei port, the port safe guard is responsible of safe keeping and security.
Regulations and also obtained methods relevant to security affairs classify in more sensitive
information and consequently, it don’t give authority to advisor. Therefore, a decision is taken
that this subject will be discussed generally. On other hand, port security aspect has accepted as
an important condition for future commercialize of Shahid Rajaei port specially in relation to
executing the ISPS regulation. This parol more adjusts for containerize operation division, more
important commercial activity of Shahid Rajaei port, which even their importance will be
increased with the start of new containerize terminal work in close future. The lines of
international shipping and also international operators always concern intensely in utilization of
ISPS regulation especially in utilization time of Shahid Rajaei port as an important gate for
transition the goods and also main port for transshipping. In done converse with international
voyage organization, it clears that Iran and among Shahid Rajaei port is in list of countries which
has executed ISPS regulations (sanctioned laws design of port installation safe guard dated, 3
June 2004). Anyway, no external supervision has accomplished yet in relation to utilizing of
these standards or more important of it the claim of one member of international voyage
organization in relevant to none utilizing of standards in one country.
29
3.2 Finance Department
Financial Structure
Financial affairs
Administrative office credits expenses revenues salary/ wage
Cash flow for choice
1 2 3 4 5 6 7 8 9
2007 2008 2009 2010 2011 2012 2013 2014 2015
4113 21547 42848 67850 74928 98398 120663 144506 168360
-5810 -4346 -2881 -1212 -572 465 1551 2688 3877
9923 25893 45659 69062 75500 97932 119113 141819 164482
-15100 -14019 - -
30
15238 2434
28447
-15100-
14019
-
15238
-
243428447
-
517711874 30421 69062 73066 97932 119113 141819 192929
-5177 6697 37118 106180 179247 277179 396292 538111 731039
Conclusions of financial calculations
Index/variable Choice of design No.1 Choice of design No.2 Choice of design No.3
Rate of inner yield 35% 35% 75.5%
Present pure value in
15% (by dollars) 289 million dollars 289 million dollars 289 million dollars
Return period(by year) 1.4 1.4 4
Duties of the budget part are divided into 4 classifications:
To do necessary affairs which are related to suggested budget
To receive budget and allocate it
To control budget
To report budget to different parts of the port
31
Funds unit
The funds unit is main base of accounting system and includes 4 parts:
To communicate with the ports organization in order to supply funds and permits
To supply funds and complete it
To supply reports for different parts of the port
Cost unit
Cost unit is one of subsets of financial affairs part. It is done following duties:
Contracts accounting
To control salaries, wages, benefits and employees missions and to issue accounting
documents
Activities of working capital
To supply documents of properties of input current
To issue other accounting documents
Salary and wage
Activities of salaries and wages are done in 4 stages:
To collect primitive information such as salaries, deductions and over time of employees
To insert above information into computers
To calculate wages and salaries
To supply the wages and salaries list
32
Income unit
Earned incomes are divided into 4 classifications in the Shahid Rajaie port:
Income of sea operations
Income of port operations
Earned income of equipments rent
Earned income of miscellaneous services
Book keeping
Book keeping is another active unit in the accounting center of the port which is done following
duties:
Earned amounts of the port
Payments of the port
Activities of loads and liabilities
To insert data into computers
To control financial accounts (balance sheet, benefit, loss, liquidity)
Properties and storekeeping
The properties and storekeeping unit which is subset of the financial affairs part includes three
parts:
Properties unit
Storekeeping unit
Preparations unit
33
A list of reevaluated properties of Shahid Rajaie port
Row Code Description Total price
1 2100 Land 5629845
2 2200 Wharfs, spaces, fences, installations 1605812
3 2300 Administrative buildings and storages 340930
4 2400 Ships, hurricane lamps, floats 726032
5 2500 Vehicles, machines, equipments 764218
6 2600 Telecommunication and administrative equipments 38751
7 2900 Research, port equipments and installations costs 384874
8 3100 Deposits 9420
Total 9499882
For preparing and exposing the financial statements, the shipping and ports organization
considers the useful life of properties. About properties, the organization of ports uses the
depreciation rate of falling value or direct line for accounting their depreciation rate that it
decreases with special rate. This accounting method of installation and equipment depreciation
has approved by financial affair organization of Iran and it corresponds with article 147 of direct
taxes regulations.
3.3 Marketing Department
Marketing Structure
34
Ship tariff to coast for material and packing goods (Rial)
Good type Good tariff(ton/day)
sundries 24،000
Hardware 20،000
bag 40،000
Dry material 10،000
livestock 4،00035
Cooling plant goods 48،000
Broken goods 48،000
Danger goods 80،000
Light automobiles 80،000
Amid heavy automobiles
160،000
Heavy automobiles 240،000
Source: the port organization, 2007, Noandishan design, 2007
Duties of non-container goods replacement for operation on land
non container goods replacement rate (Rial)
goods Replacement tariff rate(one ton/move)
Light good 30> tons sundries 36،000
hardware 32،000
bag 36،000
Heavy good 30-60 ton 120،000
61-120 ton 240،000
More than 120 ton 320،000
Dry material 8،000
Liquid material 4،000
36
Live stoke 4،000
Cooling plant goods 24،000
Broken goods 24،000
Danger goods 80،000
Light automobiles(passenger car) 120،000
Mid heavy automobiles(van) 200،000
Heavy automobile(bus,truck) 400،000
Source: the port organization, 2007, Noandishan design, 200
The rate of non-container goods warehousing
The warehouse rate for non container goods (Rial)
Warehousing time
goods group
Day 1 until 10
From day 11 until 20
From
day 21until 30
From day 30 until 40
From day 41 until 50
After 50 day
Sundries good and bag in terms of ton in day
exempt 750 1،000 1،400 2،000 3،000
Hardware in terms of ton in day exempt 600 800 1،000 1،600 2،000
Every kind of carton and
boxed package in terms of
Weight of every package until 50
kiloexempt 200 300 400 700 800
Packages with the weigh of
exempt 600 900 1،200 1،800 2،400
37
package in day
more than 50
Packages with the weigh of more than 50
exempt 600 900 1،200 1،800 2،400
Light automobile(passenger car) in terms of day
exempt12،000 16،000 20،000 24،000 32،000
Heavy and mid heavy automobile(truck, tractor, van, bus,
etc.) in terms of dayexempt 20،000 24،000 28،000 32،000 40،000
Source: the port organization, 2007, Noandishan design, 2007
The warehousing rate of containerize goods
The public tariff of container warehousing (export, import, transit, transship
to American dollar)
Warehousing time
20 foot 40 foot
Full Empty Full empty
First day to day 12
exempt exempt exempt exempt
From day11 to 30
4 2 8 4
From day 31 to 60
5/5 5/3 5/9 5
From day 61 to 90
7 4 11 6
38
after day ninety one
10 5 14 7
Source: the port organization, 2007, Noandishan design, 2007
The operation of refrigerator containers (to dollar and Rial)
20 foot refrigerator containers in inclosure80،000
Rial10 dollar
Every 24
hour
40 foot refrigerator containers in inclosure 120،000 15 dollarEvery 24
hour
Source: the port organization, 2007, Noandishan design, 2007
3.4 Operations Department
Administrative building of terminal
An administrative building should have following facilities:
Working offices
Dining room
Toilet
Dressing room and bathroom
Coffee shop and gym
Terminal localization
Wharfs allocation
39
The wharf No. 23 is allocated to eatable oil
Wharfs No. 21 and 22 are allocated to metal terminals
The Wharf No.20 and wharfs No.10-14 are allocated to movement of common goods
There is no wharf for common goods except above wharfs
Figure(11-4). Terminal of common goods
Wharf capacity
Table(11-14). Wharf capacity of common goods
Year 2006 2007 2010 2015
Average of impure use/ labor
group/in every shift
390 390 390 390
Maximize occupation rate of wharf 70% 70% 70% 70%
Numbers of working days in a year 360 360 360 360
Numbers of working shifts in a day 2 2 2 2
Numbers of wharf labors in every
ship
3 3 3 3
Numbers of wharfs 5 6 6 5
Capacity of available wharfs 2948400 3538080 3538080 2948400
Necessary capacity of wharfs 2561827 2513214 2483214 2889403
Occupation rate of wharf 50% 50% 49% 69%
40
Storage capacity
Because the port was not presented exact information about spaces of storages,
below calculations are not correct completely.
Capacity of available storages include following items:
A 15 hectare covered storage
A 28 hectare open storage
Table(11-15). Storage necessities of common goods
Year 2006 2007 2010 2015
DevelopmentPresent
situations
To open ironware terminal,
to separate FIDER terminal,
to separate grains storage
To open
terminal
of dry
materials
Import To import common
goods by ton/ in a year3000556 2406258 2309056 2889403
Import portion of total
common goods72% 96% 97% 100%
Peak coefficient ½ 1/2 1/2 1/2
Average coefficient of
space storage
0.8 0.7 0.7 0.7
41
Portion of open
storages75% 75% 75% 78%
Portion of covered
storages15% 15% 15% 15%
Pause time(day) 14 14 14 14
Export
Export of common
goods by ton1183704 106956 67954 0
Export portion of total
common goods28% 4% 3% 0%
Peak coefficient ½ 1/2 1/2 1/2
Average coefficient of
space storage5 0.7 0.7 0.7
Portion of open
storages85% 75% 75% 75%
Portion of covered
storages5% 15% 15% 15%
Pause time(day) 14 14 14 14
Need to storage space
Need to space of open, pure
storages (sq meter)143917 123939 117222 142491
Need to space of covered and pure
storages (sq meter)
26440 24788 23444 28498
42
Pure exploitation from space of
open storages50% 50% 50% 50%
Pure exploitation from space of
covered storages65% 65% 65% 65%
Need to space of open and impure
storage287834 247879 234445 284982
Square meter
Need to space of open and impure
storage(sq meter)40677 38135 36068 43843
Use of storage space
Space of allocated , and impure
open storage(sq meter) 280000 260000 200000 200000
Numbers of covered storages 9 8 8 8
Total covered storages 19 19 12 12
Numbers of empty and covered
storages6 8 0 0
Numbers of covered storages of
iron ware0 1 2 2
Numbers of covered storages for
use of private units15 17 10 10
Average size of covered storages
(sq meter)9000 9000 9000 9000
43
Use of space of open storages 51% 48% 59% 71%
Use of covered storages for
common goods50% 53% 50% 61%
Use of whole storages for private
units30% 25% 40% 49%
44
CHAPTER 4: STUDY OF SPECIFIC MANAGEMENT PROBLEM
Problem:
Intervention by the Government in Replacing the Employee or Changing the Employee
Detail:
Mangement in the port are directly selected by Ministry of President, automatically the power of
appointing goes in the hands of Ministry people. So whenever the Ministry changes or the party
changes indirectly it will result on addition or deletion of employees.
Affect:
Whenever the employee as been removed or added, the consequence is indirectly on employees,
employees may have adjusted to old Top executives, may be more comfortable with old top
executives. When yhe new boss enters they may take time in adjusting, and the addition and
deletion may happen for no reason. In directly due to Government intervention problems are
faced by both management and employees.
If the employees are not comfortable working, adopting, changes, distraction and so on
automatically the productivity of company comes down, keeping in mind the fact the
management board should certain decision.
45
CHAPTER 5: RECOMMENDATIONS AND CONCLUSION
Recommendations:
Port constructions process should be fastened.
Human Resource management should be managed well.
Marketing Channel should be improved.
Government intervention in addition of deletion of employees should be replaced with addition
and deletion directly by management based on performance.
Wide untapped markets should be exposed
Competition should be tackled by providing better facilities compared to other ports
Conclusion
The Shahid Rajaie port is the most important port in Iran because:
1. The port is main gate of entrance and exit of import and export goods in Iran.
2. Benefits of the port activities are supplied financial needs of the shipping and ports
organization.
3. The shipping and ports organization has been invested highest budget in order to develop
the Shahid Rajaie port in future.
4. Whole operations of the port will be increased in 2015 according to traffic anticipation of
the port.
46
BIBLIOGRAPHY
Websites:
www.shahidragaee.ir
www.wikipedia.org
www.iransez.com
Books Referred:
Ports of IRAN
By Abdulla Nagim 2008 edition. Rui Publishers
Iran Development and Special Economic Zones
By Richard Nael 2009 edition Matrix publishers
Shahid Rajaee Financial statements
Shahid Rajaee Policies and regulation book
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