Chapter 2


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Chapter 2

  1. 1. INDUSTRY PROFILE PROFILE OF INDIAN PORTS Ports are commonly known as places of safe shelter with necessary infrastructure for the purpose of the trade. In the view there are airports and seaports. Seaports are gateways to the world. Seaport is essential link in the international marine transport chain. Seaports play a very important role in country‟s growth. At present over 80% of all international trade goes by sea. In the case of developing countries like ours there is imperative need for growth of foreign trade. Certain important equipment has to be imported to earn foreign exchanges to buy machinery and equipment. Thus international trade is the principal generator of economic growth. Growth occurs when trade increases, while growth itself creates more trade. In this international ride, Seaports a have to function efficiently with least cost to ensure the transfer of cargo between inland and maritime transport and also and also allow goods to flow in and out of the country as quickly as possible. Thus seaports and our ports also in the essential link in the maritime transport chain. Ports are meant to provide sea borne vassals, some basic services such as clock harbor or berth facilities for the ships and launching facilities for the passengers and cargo. Apart from this, ports provide cranes, warehouse, labor for cargo handling and transport. Thus today ports become a very complex organization. MEANING AND DEFINATION OF PORT “A port is a transshipment point between sea and surface transport and an entry and exit for import trade which play as unique role in the country‟s transport system”.
  2. 2. CLASSIFICATION OF PORTS: Ports in India are classified into three categories: Major ports Intermediate ports Minor ports Major ports: Technically speaking a major port is the one which handles not less than half a millions of cargo annually and which posses labor and other facilities to receive ships of 4000 and more. Intermediate ports: This type of port is the one, which handles not less than 1500 toners of cargo annually and is independent from the point of view of passengers of traffic defense and customs. Minor ports: A minor port is the one which handles not less than 500 toners of cargo annually and which is not considered from any other point of view is termed as minor port. Major ports governed by the Major ports Act 1963and the Indian ports Act 1908. The chairman of each major port trust is appointed by the central government besides, chairman, the port trust board comprises of deputy chairman, representatives of customs, railways, defense, state government, ship owner, shippers etc., all members of board other than chairman are part time members. Our country is having a coast about 6000kms and the major ports and the minor ports are situated along the coast line and at sea, island. These are 12 major ports and 163 minor ports and intermediary ports.
  3. 3. ABOUT 12 MAJOR PORTS MAJOR PORTS SITUATED ON THE WEST COAST S.NO Name of the port State Year 1. Mumbai Port Trust Maharashtra 1875 2. Kandla Port Trust Gujarat 1955 3. Jawaharlal Nehru port Trust Maharashtra 1987 4. Karnataka 1974 5. New Mangalore Port Trust Mormugoa Goa 1961 6. Cochin port trust Kerala 1930 MAJOR PORTS SITUATED ON THE EAST COAST S.No Name of the Port State 1. Calcutta port trust 2. Paradip Orissa 1966 3. Chennai port trust Tamil Nadu 1916 4. Tuticorn Port Trust Tamil Nadu 1974 5. Visakhapatnam Andhra Pradesh 1933 West Bengal Year 1893 Port trust 6. Ennore Port trust Tamil Nadu 2002
  4. 4. Intermediate Port is one, which handles not less than 1500 tons of cargo annually. EX: Kakinada. A port handling less than 1500 tones of cargo termed as minor port. EX: Machilipatnam etc. Mumbai Port: This port is established in 1875 in Maharashtra state. It is a leading Indian port. It is a commercial gateway and premier port of India. Bombay port is a truly link great multipurpose port capable of handling dry nulls, co-author food grains state. Kandla port trust: This port is established in 1955 and geographically situated in Gujarat state. It is “sea areas of north west India.” This port has the special features of highest productivity rates among India‟s port. Jawaharlal Nehru Port trust: There is another port trust in New Bombay. It is an international trade partner the most modern port of India with fully automatic and computer controlled facilities for handling inport of day bulk cargo and import and export of containers of cargo and machines. New Mangalore Port Trust: This port is established in 1974. This is also called as the gateway of Karnataka situated on the west coast of India.
  5. 5. Mormugal port trust: This port is established in 1962. This is gateway of Golden Goa. Marmu Goa port is the point of Goa‟s rich maritime transactions. Cochin port trust: This port was established in 1930 at willing ton island. This is leading port on west coast of India. The port has the following facilities i.e., berthing facilities in the placid back water through out the year. Calcutta port trust: This port is established in 1893 in west Bengal. Calcutta port was contributed to India‟s economic development. Traditionally Calcutta port has been a terminal port; vessels bang imports to Calcutta and after necessary repairs if any undertaken take first lead of cargo export. Paradip port trust: This port is established in the year 1966 in cuttack of Orissa state. The port has four general cargo berths. Merchandised iron ore handling plant with wagon tipplers and a cap tine berth for handling raw materials for fertilizer plant located closely. Chennai port trust: This port is established in 1976 in Madras at Tamil Nadu state. This is eastern gateway of India. A port with two modern floating dry docks providing under water repairs to vessels in anchorage.
  6. 6. Tuticorn port trust: This is established in 1976. The port has many features i.e., the ideal position for your extracting business needs, no congestion no ideal man or delay here because work bustle on every pier documentation producer facilities formalities smoothed and accelerated. Visakhapatnam port trust: This is natural port. The port has specific features of quick turn round of ships, better labor productivity, coast affective cargo handling fast clearance of easiest better ideas trials relation, exemption of levy on export cargoes local point of Goa‟s rich maritime treaties. Ennore port: Newly constructed port. Main activities in the port are privatization. DEVELOPMENT OF PORTS: The problem associated with Indian ports are lack of adequate capacity to the traffic growth (against a traffic of 251 mn ton in 1997-98, the capacity stood at 215mn ton)poor labor productivity leading to poor turnaround of ships, lack of modernization and lack of adequate drafts to ships of large size. The capacity requirement of ports at the end of the ninth plan (2001-2002)is estimated to be 424mn ton. This indicates a huge gap to be bridged. A part of that gap is expected to be met by increasing productivity. Hence, to improve productivity the up gradation of existing cargo handling equipment is necessary. Ports can be turned into specific commodity handling centers. To make such ports operationally efficient, corporation of major ports is expected to be under taken. JNPT and HALDIA ports are expected to run on the basis.Mechanization, training of port personnel, the multiplicity of agencies at ports has to be eliminated for unified cargo.
  7. 7. handling labor. The beginning has already been made at Mumbai and some other port by merging dock labor board with port trusts. Development of minor ports is also considered essential. The central government will be provide technical assistance to the state government for development of minor ports & finally, attempts are begin made to attract private investments of ports. The government has issued detailed guidelines to ensure transparency and uniformity in private sector participation. GOVERNMENT POLICIES AND INITIATIVES India embarked on the bold economic program to integrate the economy with the global economy, in 1991. The government has opened up infrastructure areas to private to investments, with a view to bring in more resources and infuse better management skills to facilities private sector participation, a number of policy initiatives have been announced. To upgrade facilities and equipment in existing ports and to build new facilities, investments have come from domestic as well as. International players and were largely the result of major reform in the Indian economy and the government‟s policy of giving a greater importance to trade and commerce. In additional, the ever-increasing gap between demand and supply of port facilities coupled with chronic congestion and delays are factors that have encouraged investments in port sector. At present, around 15 projects are under various stages of implementation, while another 60 are under consideration, called for investment of Rs, 45,000 crores.
  8. 8. PRIVATISATION&CORPORATIZATION: Private sector participation: India ports have the potential to encourage as Asians hubs, both quantitative qualitative and improvement in the port infrastructure cannot be achieve without some sort of autonomy to the ports and exposing them to competition by way of private sector participation private sector participation needs be encouraged because of the following reasons. Improvement of efficiency and customer satisfaction Limited resource available with the government Attract new technology Expenditure implementation of development schemes Revenue generation and augmentation of financial viability Corporatization: A significance legal change, which the government has agreed upon, is to introduce legal amendments or to enact new laws to facilities corporation of ports, ensuring a smooth transportation of port trust into companies. This was aimed at providing independent decision making, promoting investments, speedy execution of project and professional management. For this, the viability of each port has to be studied and the major port trust act, 1963, needs to be amended. The government is making efforts to evolve public-private partnerships and restructure traffics to attract domestic and foreign investors. Recent efforts to corporation the ports of JNPT and HALDIA are steps in the right direction, but the process needs to be expedited so that existing ports can effectively compete with upcoming private ports.
  9. 9. The main sources of revenue from cargo traffic are: 1. Wharefage / handling fees, cargo related charges. 2. Crane hire charges 3. Rental from warehouse 4. Demurrage charges Similarly the main sources of revenue from ship traffic are: 1. Port dues 2. Pilotage 3. Berth hire 4. Survey and measuring fees 5. Ship repairs in dock areas, charges for water supply The main activities of port are: 1. Maintenance of port approaches, navigable channels and long side berths, dredges, conservancy, hydrographic surveys. 2. Pilot age, towage, berthing and unearthing of visiting ships. 3. Handling, warehousing and transportation of goods in port area. 4. Civil, electrical, mechanical engineering maintenance of harbor crafts and plants. 5. Fire fighting and fumigation. 6. Stores. 7. Medical, welfare, housing of employees. 8. Management of port properties and estates.
  10. 10. COMPANY PROFILE PROFILE OF VISAKAPATNAM PORT TRUST Visakhapatnam was an ancient port city, which had trade relations with Middle East and Rome. Visakhapatnam port is one of the leading ports of India which was act up in the year 1993 originally concerted as an outlet for manganese exports. It has gone strength adapting itself to the need of changing environment, strategically located at the east-coast was not only was not only serving for commercial purpose but also promoting industrialization of the hinterland by acting as a catalyst for various types of post based industries. LOCATION: Visakhapatnam port, one of the 12 major ports of India, is ideally located in the state of ANDHRA PRADESH at a attitude of 17.41‟N and longitude of 83.18‟E on the shore of bay of Bengal, 780kms, madras and 880kms, from Kolkata. The VPT has occupied a total area of 10394,in which 741 acres is of water speed, 9591acres is of land area 62 acres of area reclaimed. Vision To be the most preferred port in South Asia offering services of global standards. Mission To be a major partner in meeting the logistics requirements of the importers and exports of the region.
  11. 11. Unique features Island Break-water, constructed by scuttling two old ships JANUS and WELLESDON which form the skeleton around which a rubble mound is formed. It is a natural port endowed with deep water basins formed by a high promontory into the sea, known as Dolphin‟s Nose Hill to the south and Ross Hill to the North of the entrance channel. The only port in India and first of its kind in South Asia to have a Cavern facility for LPG – a mined rockCavern at a depth of 200 meters. below sea level (capacity: 60,000 Tons). NATURAL HARBOUR: Visakhapatnam is one of the best, natural port in India and its location provides protection from cyclones, which strikes the east coast regularly during May/November. The “dolphin nose” hill which is to the south of the entrance channel, Ross and Durga hill which are to the north of the entrance channel are land forms which provides tranquil waters for the port for the outer harbor, to artificial break water provides necessary conditions for tranquil waters. This low range of a maximize of 1.82 meters this section of the sea is advantages for the location of the port. HISTORY: The need for a port of the country was emphasized as early as in 1858 in a report of British survey party. This was underlined in the report titled “Vizag, the port of central provinces (1877).Mr. E.S. Thomas, while submitting the proposals for creation of the port in 1872 described it as the most natural and most easily formed port‟ on the east coast of India. The daughter of sir Arthur cotton described the harbor as a natural outlet for northern India by a direct railway to Allahabad and observed the location as a strategic point on the eastern coast
  12. 12. where incomparably the „best harbor‟ can be made by a single break-water run out from the bold promontory of the dolphin‟s nose. It was only in 1914 that the proposal for construction of a harbor at Visakhapatnam was initiated by the then Bengal Nagpur railway and in 1922 a proposal of col.H. Cartwright Reid of British admirably for the construction of a harbor at the mouth of river Meghadrigedda was adopted. The construction work, which started in 1927 contributed up to 1933, and the first commercial vessel S.S.JALADURGA of M/s. schindia steam navigation co., entered the port on the 7th October 1933 providing initially a sea outlet for manganese ore. The saga of the construction of the harbor particularly forming of entrance channel, sinking of two old ships JANUS and WELLESDONE to form break-water instead of building a wall in the sea were all feet‟s in engineering and are subjects of discussion even today. Mr.W.C Ash and Mr. D.B.Ratter berry were the engineers who played prominent role in constructing this beautiful harbor. The port was formally inaugurated by his Excellency lord willing don, the then viceroy and governor general of India on 19th Dec. 1933. Nestling among a chain of hills, the Vizag harbor is really one of the wonders of the nature, as if god that a man in this area must benefit by a very safe anchorage to ships has intended it. The entrance channel is protected by, two massive rock hills, namely dolphins nose on the southern side and Ross hill on the north side and these two hills shelter a bay, which processed sufficient depth for the ships, which were engaged in sea trade up to 1950s. The high promontory of the dolphin‟s nose hill into the sea provides protection from cyclones that strike the east coast The port has striking similarities with Durban port of Africa in the sense that the later is also surrounded by a hill on the south side. It is due to that reason that engineer Mr. W.C.Ash studied Durban Port before developing this port. Mr . Chalapathi Roan, one of the famous writers described the Docks and Harbor of this Port as PICASSO‟s cubist pictures.
  13. 13. The port administration which was under Bengal-Nagpur railway in 1933 passed through different departments of ministries of the government of India till its transfer to the port trust in Feb. 1964 under the major port trusts act, 1963 as shown below: 1926-35 RAILWAY BOARD 1935-37 COMMERCIAL DEPARTMENT 1937-42 COMMUNICATION DEPARTMENT 1942-44 WAR TRANSPORT DEPARTMENT 1944-46 DEFENCE (WAR) DEPARTMENT 1946-56 BENGAL NAGPUR RAILWAYS 1956-64 MINISTRY OF TRANSPORT 1964-FEB TRUST UNDER MPT ACT When opened for sea going vessels in 1963, the port had only three berths with a cargo handling capacity of 0.3 million tons. The chronological events of developing are described in the succeeding paras. Berths: The first BOT project – container terminal at outer harbor –commenced its operations in June 2003 which was concessioner to Visakha container terminal Pvt Ltd., a joint venture company owned by Dubai port international and J.M.Baxi PVT LTD. Two new berths in the extended northern arm of inner harbors (EQ.8 &EQ.9)were developed on BOT basis by M/s.Vizag sea port Pvt Ltd., a joint venture between Portia management services, U.K. & M/s. Gammon India ltd., Mumbai and commissioned on 29th July 2005 by Honble minister for shipping , road transport and high ways.
  14. 14. Other facilities: 150 tons BP tug was commissioned in the year 2000-01. Ten no‟s of 15 ton electric wharf cranes were commissioned in 2001. Mechanized dust suppression system designed and erected by MECONS was commissioned on 5th June 2002. One rail mounted stacker of 2700 TPH capacity was commissioned on 28th May, 2003. One No. fire float of Agni class-1 was commissioned on 2nd September, 2003. Four wharf cranes of 20 tons were commissioned in 2004-05. One FRP launch was commissioned on 2nd January, 2005. One dredger built by M/s. Hindustan shipyard Ltd., was commissioned on 9th Feb, 2005. Information technology was introduced into port operations 1st .April 20. GROWTH OF THE PORT: Planned development of the port started with the commencement of our country‟s fiveyear plans. Huge investments were made during different five year plan periods for providing more facilities, such as construction of additional berths, modernization of cargo handling facilities development of the trade. Thus with humble beginning Visakhapatnam has carved the place of prestige, in the realm of ports by having a number of developments. In the first plan, four alongside berths were constructed and cargo-handling facilities were strengthened. During second five-year plan, two oil berths were commissioned for the benefit of oil refinery. During third and fourth five-year plan, mechanized ore handling, plant for export of iron ore, was commissioned in 1995. Further, two or more quay berths to handle bulk cargoes and specialized further berths to handle raw materials for the use of entrance M/s C.F.L were commissioned. Besides the above, augmentation, certain other infrastructural facilities like widening and depending channel, procurement of higher cargo handling equipment and reorganization of railway system were also taken up.
  15. 15. During fifth five year plan for export of large quantities of iron ore to Japan, and outer was established to accommodate large vessels such as 1,50,000 a cost Rs. 110crores and iron ore loading facilities were augmented to load iron ore at a rate 8,000 T.P.H. In sixth and seventh five year plans, oil morning was developed to accommodated carries large crude of 1,50,000 D.W.T. was direct discharge facility at a very high rate hour from the ship to refinery commissioned a general cum bulk cargo was commissioned in 1985. During eighth plan, outer harbor the country‟s biggest and most modern fishing to accommodate 96 trawlers and 300 mechanized boats has been developed in three phases. Visakhapatnam port started with a traffic level of 1.3 lakh tones in 1933-34 witnesses a phenomenal growth of 34.5 million tons in 1996-1997. The development schemes included in 9th plan are construction of multipurpose berths in north of northern arm of inner harbor at a cost of Rs.120 crores and development of railway system etc. The total outlay projected for 9th plan for Visakhapatnam port trust is about Rs. 1178 crores. To have further development, port has drawn up a perspective plan for capacity augmentation and organization efficiency enhancement in pursuance‟s of the above; it has been taken for development of container of port railways infrastructures etc., with such as handle 47 million tons of cargo. Visakhapatnam port trust attained a very sound financial status over the year. The port is itself sufficient to finance its all development projects from its internal sources. The traffic levels are relatively low compared to other port of our country. Results oriented performance and optimization of resources is the guild lined philosophy of our port.
  16. 16. Visakhapatnam port trust is helpful development especially in Visakhapatnam, where so many notable industries were established in Visakhapatnam, such as Hindustan petroleum Ltd., (HPCL), Bharat Heavy Plates & Vessels Ltd., (BHPV), Hindustan Zinc Ltd., and export processing zone, steel plant, Hindustan shipyard & Coramandel Fertilizers Ltd. Harbor facilities in Visakhapatnam port trust: INNER HARBOR: Water spread area – 100 hectares, Land area – 3,881 hectares, The inner harbor has eleven quay berths i.e., multi commodity and 3 JETTY berths and one mooring birth. OUTER HARBOR: Water spread area – 200 hectares, Land area – 25 hectares, The outer harbor has a protected tranquil base of 200 hectares encompassed by a set break locates on the eastern, southern and northern sides of the basin.
  17. 17. FISHING HARBOR: As an adjacent to and as a byproduct of the outer harbor a modern fishing harbor has come to existence. The protected water in the fishing harbor is 24 hectares with a draft of 7.5 meters. Visakhapatnam was a minor port, ships were anchored in the open off shore area and the cargo transported in small boats. It gained the status of major port in 1963 and it was in February 1964 that the Visakhapatnam port was constituted. Visakhapatnam port berths INNER HARBOR Multipurpose : 13 Oil refinery : 2 Mooring : 1 Fertilizer berth : 1 L.P.G. Terminal : 1 ORE berths : 2 GCB(General cum bulk cargo) : 1 O.S.T.T : 1 : : 2 1 OUTER HARBOR (OSTT- off shore tanker terminal) Multipurpose New oil mooring In the first five year plan 4 berths were constructed and cargo handling facilities strengthened. During second 5 years plan 2 oils berths were commissioned for the benefit of oil ore commissioned in 1965 further the quay.
  18. 18. TRANSPORT NETWORK:  RAILWAY: A full pledged port railway with 183.80 kms of board guage is aimed, maintained and operated by the port. It is functioning as a terminal agent for the south eastern railway facilities for direct receipt and dispatch of goods from and to any point of country 20 B.G locomotives are owned by port railway.  DREDGING: There are 8 shipping tugs with ballard pull varying from 30 tones to 32 tones for towing the ships and also two smaller tugs. There are 14 launches with varying Hindustan petroleum for various purpose and 300 mechanized boats. It has a 65-meter wide entrance depth of 7.5 meters  CARGO HANDLING: The port has 25 electrical wharf cranes of varying from 3 to 10. Two No‟s of 50 ones of gantry cranes for handling containers, 2 floating cranes, one of 150 tones capacity self propelled floating cranes “BHEEMA” and 50 tones capacity floating crane “HANUMAN” , the mobile cargo handling equipment is utilized for loading of cargo into the wagon, lorries etc.
  19. 19. PERSPECTIVE PLAN FOR VISAKHAPATNAM PORT 1996-2020 The port desires to ahead & peeps into the future to enable it to formulate appropriate development, operational and managements strategies to fulfill to avowed policy of providing a high standard & efficient port services to its customer‟s clientele. Accordingly, the planning department of port trust was entrusted with the task of preparing the perspective plan in consultation with the other developments of the port & concerned authorities associated with port industry. The study divided into 4 parts.  Cargo perspective  Developmental perspective  Technology perspective  Organization perspective. The main aim of the perspective plan is to provide qualitative services, a service no way second to that of services provided by the other party in the world to it‟s customers, through adequate & efficient that meet & fulfill the demand from the port to year. HINTERLAND: The growth of Visakhapatnam city & port depends to a large extent on the regional potentialities. Hinterland is a German word, which means „back country‟ & is referred to the territory beyond to the coastal district over which the colonial power claimed jurisdiction. Subsequently geographers adopted the word. The growth & the change of maritime transport, port activity & road transport have altered the traditional concept of port hinterland. The pattern & volume of traffic of any port & its capacity to grow depend to a large extent upon the nature & extent of economic activity in the hinterland. Hence the size and shape of the economic hinterland determined by is physical geography set pattern of trade, location of industry, and transport facility for movement of raw materials.
  20. 20. Port serves hinterland of Andhra Pradesh, Orissa, Bihar, Maharashtra & Utter Pradesh playing vital role in fastening the countries foreign trade & rapid industrialization of the hinterland. In recognition of the outstanding contribution, made by the port, A.P. pollution central board was presented a certificate for „Best Green Belt Development‟ to Visakhapatnam port on 5-6-2002, the World Environment Day. QUALITY POLICY (ISO 9001-2000): VPT is committed to prompt, efficient and safe services at optimum cost for ensuring quick turnaround of sea, rail, road borne cargo and carries, maintaining total transparency in all the transactions of port users. ENVIRONMENTAL POLICY OF VPT (ISO 14001-2004) VPT is committed to minimizing the adverse impact of its operations on the environment. Towards this end, it shall endeavor to.  Install, maintain and operate port facilities to comply with applicable environmental rules and laws.  Continuous improvement of environment of environmental performance by a system of review.  Set sound environmental objectives and targets.  Ensures awareness among employees and the port users on environment related aspects.
  21. 21. OBJECTIVES OF PORT: The main objectives of working of the port is to import & export cargo on ships. By this the very benefit that occurs to the nation is as follows. CORPORATE OBJECTIVES OF PORT: 1. To fulfill its role in the promotion of international trade, particularly of export trade and of economic and industrial development of the nation. 2. To anticipate and respond to the economic, trading and technological development and provide the necessary port and harbor facilities in time. 3. To provide provide prompt efficient and sale services on water and on shore at optimum cost and ensure quick turn round of ships, rail wagons and road vehicles. 4. To simplify systems, rules and procedure in respect of all port activities leading to optimum utilization of capital, man, material and time. 5. To maintain optimum requirements of human and technological needs. 6. To development human resources, with a view to acquire attitudes and skill required meeting managerial operational and technological needs. 7. To evolve a participate style of management resulting in a safe healthy working environment, increased production and productivity and goodwill among all employees. 8. To motive employees towards increased productivity through wage, incentive and equitable share in the gains of productivity and fair wages.
  22. 22. 9. To sure and adequate return the capital invested and generates internal resources to finance further development. 10. To design a suitable organization structure under which will enable the employees to functional to the best of their ability and capacity as the managerial personal made accountable for achievement of operational and cost objectives. 11. To strive towards improving the quality of employees and their families. KEY OBJECTIVES OF VPT: 1. To emerge as high tech port at par with international standards. 2. To explore new markets and to be innovative. 3. To provide prompt efficient and services on water and shore at optimum cost and ensure quick turnaround of ships, rail wagons and road vehicles. 4. To develop human resources with a view to acquire attitudes and skills required to meet managerial, operational and technological needs. 5. To simplify the rule and procedures in respect of all port activities leading to optimum utilization of capital, men, material and time. 6. To anticipate and respond to the economic trading and technological developments and provide the necessary port and harbor facilities in time. 7. To ensure the organizational effectiveness.
  23. 23. SOCIAL OBLIGATIONS AND COMMUNITY DEVELOPMENT: `Visakhapatnam port trust conscious of social obligation has been taken interest in community development as a corporate citizen. To mention for the development projects taken up by port are sports & culture complex, aqua sports complex etc. , VPT extends financial support for the improvement of facilities in hospital and educational institutions, for promotion of libraries and various other welfare projects of the city. VPT gives almost importance to the environmental protection and development green plantation in and around port premises. To have further development, Visakhapatnam port trust has drawn up a prospective plan for capacity augmentation and organization efficiency enhancement, in purchase of the above measures have been taken for development of container handling facilities, computerization of material management system, re-organization of port railway infrastructure etc., with such a growth, it is estimated that by end of the country, the port would handle 47 million tones of cargo. VPT was recorded with income and expenditure of Rs.273.75 crores and Rs.181.25 crores respectively during 1998-99. Hence VPT is playing a vital role in development export and import business of our country as well as contributing growth to the Indian economy. FUNCTIONS OF VPT: 1. To keep administration all books of accounts / ledger records of the board with reference toA. All receipt and disbursements of money and the manner in respect of which receipts and distribution take place. B. All bills for the services rendered and related transactions. C. All purchases of stocks, stores and materials and equipment. D. All assets and liabilities 2. To fix rents / leases rates / charges fees dues in respect of buildings, land rented / leased and plant rates equipment hire for the various services rendered to the trade and connected parties there.
  24. 24. 3. To check assessment, watch and purse the collection of all trusts due fees charges on goods imported and exported from the port and for the services rendered to vessels crafts, equipment and leaving the port. 4. To scrutinize/verify/pre-audit all payments with reference to the sanction agreement, contracts, etc., and order payments etc., certified and passed by the department concerned on behalf of the board. 5. To arrange for proper and prompt disbursement of moneys on the basis of bills dully checked and passed by various sections of FA&CAO‟S department. 6. To arrange for loans on behalf of board as and when necessary for the purpose of capital development programs. 7. To build up reserves funds and administration thereof. 8. To ensure that the cash and funds balances of the board and invested in a manner most advantageous to board. 9. To prepare monthly / quarterly statements showing the progress of capital works and submission of the same for the information of board. 10. To complete monthly/quarterly accounts revenue and expenditure and submission of same for perusal of chairman/board. 11. To prepare annual budgets of revenue and capital for the approval of the board and for onwards transmission of the government of sanction.
  25. 25. 12. To exercise control over the progress of expenditure by means of the budgetary control and responsibility. 13. To complete annual accounts and administration reports and submission of the same to government certified by the audit. 14. To provide the board with the management information, such as cost analysis statements and management accounting statements at such intervals as may be requires. 15. To submit the necessary financial returns by the chairman/board/government from time to time. HIGHLIGHTS: Only Indian port having three international accreditations –ISO9001, ISO14001, OHSAS18001 The port is ISPS compliant. Emergency control center, Fire control office and CISF Control office works round the clock Record cargo throughput of 64.60MMT during 2007-08. Highest annual railway traffic among major ports – 35.5 MMT in 2007-08.
  26. 26. MAJOR IMPORTS & EXPORTS IMPORTS EXPORTS Urea Iron ore Marinate of potash Manganese ore Sculpture Charge chrome Rock potash Other ore’s Food grants Steel rails Crude oils Steel coils Petroleum products Thermal coals Cooking coal Alumina powder Zinc concentrates Wheat Iron scrap Shrimp Metallurgical coal sugar Iron & steel Machinery Cement Sugar edible oil Timber logs Liquid ammonia Iron pellets Lead concentrates Phosphoric acid
  27. 27. Set-up of the organization: Each major port has a board of trusties representing various interests connected with the port operations & shipping industry. The chairman of each major port is appointed by central government besides chairman the port trust board comprises deputy chairman, representatives of customers, railway, defense, state government, ship owners, shippers etc. All members other than the chairman &deputy chairman are port time members. There are 10 departments in Visakhapatnam port trust and those departments are categorized under 2 heads: 1. Assisting department: a. Administrative department b. Finance department c. Personal department d. Research‟s planning department e. Material department f. Medical department. 2. Operational department: a. Marine department b. Traffic department c. Mechanical department d. Engineering department
  28. 28. FUNCTIONS OF DIFFERENT DEPARTMENTS: 1. Administrative department: The secretary heads it. The functions of this departments are like Administrative policy, board matters, legal matters & co-ordination of all departments. 2. Finance department: Financial adviser & chief accounts officer head this department. The functions of this department are managing finance matters, preparation and computation of budgets; inter audit and revenue realization etc. 3. Personal department: This department is headed by manager (operations). The matters related to personnel policies and the recruitment of employees, sanctioning of posts, their welfare, needs, training an personal matters & industrial etc. it is responsible for creating and conducting harmonized relations in the organizations, so as to achieve maximum productivity & better facilities in the work. 4. Research’s planning department: This department consists of compiling information, port statistics, project capital budgeting, forecasting trade, traffic analysis trade promotion and data processing of wage bills etc.
  29. 29. 5. Material department: Chief material manager heads this department. The function of this department is procurement of materials, storage of stores & supply to all departments as per requirements as per requirements & norms. 6. Medical department: Chief medical officer heads this department. It provides health, sanitary & medical facilities to the employees of all departments of port trust. 7. Marine department: This is under the control of deputy conservator. It is responsible for safe navigation of vessels and berthing, pilot age, maintenance of dredging a port, fire services and other functions of this department. 8. Traffic department: Traffic manager heads this department. The activities of this department are responsible for smooth flow of traffic by allotting berths to the ships visiting the port & collects berthing charges, rail traffic operations. 9. Mechanical department: This department is under the control of chief mechanical engineer. It maintains all electrical & mechanical equipment and executed projects works regarding purchases & installing of electrical or mechanical equipment.
  30. 30. 10. Engineering department: Chief engineer heads this department. The functions of this department are construction of project work and maintenance of civil works like building quarters & mainly berths etc.. CHAIRMAN DY. CHAIRMAN NON-OPERATIONAL OPERATIONAL ADMINISTRATION DEPARTMENT PERSONNEL DEPARTMENT MEDICAL DEPARTMENT ACCOUNTS DEPARTMENT CIVIL DEPARTMENT RESEARCH AND PLANNING DEPARTMENT TRAFFIC DEPARTMENT MATERIAL DEPARTMENT MARINE DEPARTMENT MECHANICAL & CIVIL DEPARTMENTS
  32. 32. ORGANISATION STRUCTURE An organization structure is the structural relationship between the various factors in an enterprise. Organizational structures are designed to overcome the limitation of people and to create an environment in which men‟s energies will be recluse to concentrate on the work at hand moreover organization is concerned with building, developing and maintaining a structural of working relationship in order to accomplish the objectives of the enterprise. Organization at the same time denotes both structure and process. As a structural organization is structural relationship among various departments in an enterprise. In an enterprise, organization is the process of harmony co-ordinates & combination of individual effort for the accomplishment of a set predetermined goals. The major port is under the direct administrative control of central government. The port administered by 18board of trustees under the major port trust act, 1963 assisted in day-today administration by the heads of departments. Previously, the port trustees number of major port trust act, 1963. TRUSTEES: One trustee is representing the customs department. One trustee is representing the railway One trustee is representing the state government One trustee is representing the central government One trustee is representing the defense. Two trustees are representing the labor. One trustee is representing the steamship owners association. One trustee is representing the A.P chamber of commerce. One trustee is representing the Visakhapatnam chamber of commerce. One trustee is representing the HPCL. Four trustees is representing others.
  34. 34. BUSINESS GOALS  To facilitate navigation of panama vessels with 11mts draft in 2006 and 14mts draft in 2008in to inner harbor.  To introduce night navigation to suezmax tankers.  To install integrated mechanized handling facility for cooking coal, alumina, steam coal.  To upgrade outer harbor facilities for cater to 2 lakh DWT vessels by 2008.  To achieve 100 MT in cargo throughput by 2010  To improve organizational effectiveness with a view to reducing the transactional cost to the user.  To upgrade the logistics with special emphasis on rail and road connectivity, stack yard development.  To extend scope of the information technology in to berth allocation planning, EDI and E-banking.
  35. 35. FUTURE IMPROVEMENTS 1. IN 1997 – 98 Mumbai handled a peak 6.01 lack TEUS which has now reduced to 3.07 lack in2001 – 02. This down trend may continue in view of lack of facilities at Mumbai. They have some plans to construct off shore berths under BOT concept which has nor materialized since 2 years. 2. JNP, not surprisingly, in view limited berth space4 and bulk dividing, have proposed conversion of their 3 berths into container berths under BOT , concept for Rs.700 crores. The proposal to double the railway line from port is also actively being pursued. This is bound to materialize and become operational in another 2-3 years. 3. in Chennai the container berth are privatizes to P & O a year before after legal battles with the employee‟s worker union results have started flowing Chennai has potential to become a hub port. 4. Visakhapatnam and Tuticorin have also leased their berths under privatization and hence there is scope for increased handling of containers. 5. Cochin has developed container terminal with ADB funding and they have plans to development vallanpadam terminal as a Transshipping Port under privatization. 6. Kandla port lost their chance of container handling improvements by P&O under privatization concept, due to negative attitude shown by their employees. The privatization scheme hence feel through loss of this is a gain for Mudra Port where again P&O is involved, in equipping and operating the container terminal with 2 berths. Mudra port has 15 m draft and hence would cause impact in container traffic at Kandla.
  36. 36. NOTABLE EVENTS  Emerged as "Top Ranking Port" of the country for the second year in successor with highest throughout among major ports (44.343) m i l l i o n tons).  A clear lead of 6.4 M i l l i o n tons over 2m highest throughout of Candela Port.  Highest throughout of 74.04 laky tones through ore handling complex - lst time since inception of the plan in 1965.  Zero demurrage on port account to the iron ore ships launched at the port – an event unheard in the history of port.  Savings to the exchanger to the t u n e of about Rs.76 cores through improved performance of tire handling complex.  Lowest ever pre-berthing detention of 57 hours and lowest ever turn round time of 3.51 days.  Highest ever Avg. berth day output of 10,772 tones surpassing the provided best throughout of 9.799 tons by 10%.  Highest compound annual growth rates ol' 13.98% in the berth any output during the 9lh plan - Higher among major ports.  Highest ever container through put of 21,517 Toe's.
  37. 37. DEFICIENCES The deficiencies in Visakhapatnam Port Trust as well as many other ports generally are as follows these are the major deficiencies that hinder the growth of ports. Ships have to wait for long in the channel for berthing The Productivity of unloading/ loading are so low that ships waiting at berth Increases quite considerable compared to international standards. Ports handling is labour intensive hence susceptible for not only low productivity but also to the whims of labour lack of mechanized handling for bulk cargo. Desire to change the outmoded system lacking. Available equipments are outdated and hence have low efficiency. Capital Maintenance dredging is not adequate. Berthing of ship navigation wait for high tides. Night navigation is not available, hence the ships have to wait for daylight. Adequate and proper cranes are not available for handling container. Insufficient yard for stacking/handling containers. Where cranes are available, the productivity is low, operators lack experience or the maintenance is lacking. The railways do not provide adequate rakes for easy movements of cargo/containers. Lack of ICDs facilities, where exists are insufficient. Due to resource crunch the developments needed are lacking. Port Trust Official lack authority and flexibility.
  38. 38. REMIDIES The following are some measures suggested to overcome and improvise the deficiencies some of these measures have been implemented and have shown remarkable improvements the same is an ongoing process. Increase the productivity by elimination of labor and adopt mechanical handling. Replace the old equipments to modern hi-tech type. Streamline the maintenance aspects and spare parts of equipments. Training at all levels to induce better mindset commitment efficiency, professionalism and productivity. Construct additional berths. Berth should wait for ships and not the reverse. Capital and maintenance Dredging of channels to bring in deep drafted vessels. Provisions of adequate equipments, yards, storage areas for container handling which requires special attention. Developments of additional ICDs for aggregation movement of container traffic. Improving the navigation management system, Measures for enabling night navigation. The Concept of r-engineering and process should be given a thrust in port operation, maintenance and development. Introduction of automation and computerization in various operations, documentations and administration.