A study on Sea Port Industry (An Empirical Research)

A STUDY ON PORT INDUSTRY
An Industrial Data Analysis and Presentation (IDAP) Report Submitted to
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, KAKINADA
In partial fulfillment of the requirement
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
MADA SARATH KUMAR
(REG.NO. 19761E0074)
Under the guidance of
Mr. K. RAVI KIRAN YASASWI, M.B.A.
ASSISTANT PROFESSOR,
SCHOOLOF MANAGEMENT STUDIES
LAKIREDDY BALI REDDY COLLEGE OF ENGINEERING
(Approved by AICTE. New Delhi Affiliated to J.N.T.U. Kakinada)
MYLAVARAM, KRISHNA DISTRICT
2019-2020

DECLARATION
I hereby declare that the Industrial Data Analysis and Presentation (IDAP)
Report entitled “A STUDY ON PORT INDUSTRY” is a record of independent
research work and has been carried out by me during the period of my study at
(AUTONOMOUS), Mylavaram under the guidance of Mr. K. RAVI KIRAN
YASASWI, MBA, Assistant Professor in SCHOOL OF MANAGEMENT
STUDIES, and has not been submitted elsewhere for any degree either in part or
whole.
(M. SARATH KUMAR)
Reg. No. 19761E0074

(AUTONOMOUS)
(Approved by A.I.C.T.E., New Delhi &Affiliated to J. N.T.U, Kakinada)
L. B.Reddy Nagar, Mylavaram, Krishna Dist., A.P, India. PIN: 521230
Date: 09-11-2020
CERTIFICATE
This is to certify that the Industry Analysis and Data Presentation Report entitled “A
STUDY ON PORT INDUSTRY” is submitted by MADA SARATH KUMAR in partial
fulfillment of work award of the MASTER OF BUSINESS ADMINISTRATION submitted
to J.N.T.U, Kakinada has been completed under my supervision and guidance.
This project has not been submitted earlier for the award of any degree or diploma of
J.N.T.U, Kakinada or any other university.
Head of the Department
Dr. A. Adisesha Reddy
M.B.A.; M.Com; Ph.D.
Professor, LBRCE
Project Guide
Mr. K. Ravi Kiran Yasaswi
M.B.A.
Assistant Professor, LBRCE

ACKNOWLEDGEMENT
I express my profound sense of gratitude to Mr. K. RAVI KIRAN
YASASWI for giving me this opportunity, and for his valuable guidance, help and
inspiration throughout the Industry Analysis Work
I would like to convey my respectable thanks to Dr. A. ADISESHA
REDDY, Head of the Department, SCHOOL OF MANAGEMENT STUDIES, for
extending his cooperation in the beginning of the training program.
It gives me great pleasure to acknowledge my indebtedness to my parents
for their moral support and encouragement in my studies.
My special thanks to my friends to helped me in completion of Industry
Analysis Work
(M. SARATH KUMAR)
(Reg. No.19761E0074)

Table of Contents
CHAPTERS CONTENTS PAGE NO.
Chapter I
1.1. Introduction 7-9
1.2. Need Of The Study 9-10
1.3. Objectives Of The Study 11-12
1.4. Research Methodology 13
1.5. Limitations Of The Study 14
Chapter II
2.1. Origin of Port Industry 17-20
2.2. History of the Port Industry 20-22
2.3. Recent Trends in Port Industry 22-23
2.4. Top 10 Ports in World 23-29
2.5. Top 10 Ports in India 29-35
Chapter III
3.1. Strengths of the Port Industry 37-39
3.2. Weakness of the Port Industry 40-41
3.3. Opportunities of the Port Industry 42-44
3.4. Threats of the Port Industry 45-48
3.5. Findings and Suggestions 49-53
3.6. Conclusion 54
Bibliography Text Books (Name, Author Name, Publishers, Address, Year)
News Papers, Magazines and etc.
Websites (Name, Author Name, Date of Publishing)
55

CHAPTER – I
1.1. INTRODUCTION
1.2. NEED OF THE STUDY
1.3. OBJECTIVES OF THE STUDY
1.4. RESEARCH METHODOLOGY
1.5. LIMITATIONS OF THE STUDY

1.1. INTRODUCTION:
A sea port is a maritime facility that can comprise one or more wharves where ships can dock to
load and discharge cargo and passengers. Although frequently located on a sea coast or estuary,
some ports can be situated miles inland, with access to the sea via river or canal. If a port is
located on a lake, river, or canal that goes to a sea or ocean, that port can be defined an inland
port. Ports can also be called a harbor or harbor. Asia is the continent with some of the world’s
largest and busiest ports, such as Singapore, Shanghai and Ningbo-Zhou Shan. A port is defined
as an area on both land and water, whether on the sea or river, that provides facilities for
shipping vessels to load and unload their cargo. This area, contained within "Port Limits", will
have been established over years of increasing or declining trade patterns and therefore is defined
as the "Human Set Limits" There may be several harbors and or terminals within the port limits.
A good example of this is Sydney, new South Wales, Australia where the port contains several
harbors, including Port Jackson, North and Middle Harbors.
Further to this there are also several port types where different trade restrictions apply, 1.
Free Ports, ports where international trade can be conducted with less strict Customs regulations,
so it saves time on paperwork and bottom-line costs. Very useful if you are looking to transship
cargo through a regional hub port. For that reason many regional hubs tend to have Free Port
Zones. An example of this is Yangshan in China, Shanghai's deep water port. 2. Closed Ports,
ports where foreign trade vessels are barred and only national coastal traffic is handled. This is
the case with some feeder ports especially Japan. This may be down to a number of reasons, but
usually due to the fact there are no Immigration or Customs authorities based at or near the port.
It also protects the national fleet from being undercut by cheaper foreign vessels.
Harbor: A harbor tends to be a physical area where water meets land and results in a sheltered
bay, such as Botany Bay in New South Wales, Australia. It may also be a result of an area of
water enclosed by human intervention such as the building of breakwaters in the open sea. A
good example of this is Portland Harbor in the United Kingdom.
Terminal: A terminal is defined as a single man-made facility that may have several berths, that
handles vessels and possibly more than one type of vessel or cargo. There are two types of
terminal 1. Those within coastal often sheltered waters with a land bridge, such as Jose Gas

Terminal in Venezuela. 2. Those in open often deep water exposed to the elements with no land
bridge. A good example of this is Louisiana Offshore Oil Port (LOOP) in Louisiana, USA. Each
terminal usually has a primary operator, but may also be a common-user facility under the
control of the Port Authority or third party.
Port Industry in India: India has a long coastline of about 7,517 km along the western and
eastern shelves of the mainland. With 12 major ports and 187 minor ports, India ranks 16th
among maritime countries and has one of the largest merchant shipping fleets in the world.
According to the Ministry of Shipping, approximately 95% of the country’s trade by volume and
70% by value moves through maritime transport, highlighting the importance of ports and their
contribution in sustaining the growth and development of the Indian economy.
The increasing trend of Western countries moving their manufacturing functions to low-cost
countries and the fact that India need to create millions of jobs for youth joining workforce
every- year means that India could be a prospective manufacturing hub after china. This means
we also need to focus on port led development by improvement in port infrastructure.
Policy Initiatives by government for Port led development: The Ministry of Shipping, the
nodal agency for ports, encompasses the shipping and port sectors, including shipbuilding and
ship repair, major ports and inland water transport. As per government policy, 100% FDI is
allowed in port development projects. As way of incentive, 100% income tax exemption from
income tax is extended to companies investing in port infrastructure. Further, a 10-year tax
holiday has been given to enterprises engaged in the business of developing, maintaining and
operating ports, inland waterways and inland ports.
National Maritime Development Programme (NMDP): It is An initiative to develop the
maritime sector, with an outlay of USD 11.8 billion. The policy lists measures for enhancing
private investment, improving service quality and promoting competitiveness to meet medium-
and long-term objectives. The programme will be implemented through public/private
partnership in two phases. The National Maritime Agenda 2010–20 outlines the framework for
the development of the port sector with a target capacity of over 3 billion tones by 2020, largely
through private sector participation. The agenda envisages a cumulative investment of around
Rs. 2,774 billion in the port sector between 2010 and 2020 in three phases.

The non-major ports are expected to account for 61% of the proposed investment and the major
ports for the rest. The agenda also suggests policy-related initiatives to improve the operating
efficiency and competitiveness of Indian ports. These include major ports to be turned into
landlord ports by 2020 with their role being to provide the port infrastructure, while operations
and services would be provided by the private sector participants.
Sagara Mala Project: It is a strategic and customer-oriented initiative of the Government to
modernize India's Ports so that port-led development can be augmented and coastlines can be
developed to contribute in India's growth. It looks towards transforming the existing Ports into
modern world class Ports and integrate the development of the Ports, the Industrial clusters and
hinterland and efficient evacuation systems through road, rail, inland and coastal waterways
resulting in Ports becoming the drivers of economic activity in coastal areas.
1.2. NEED OF THE STUDY:
Ports are one of the primary components of the general transportation sector and are nowadays
linked to the expanding world economy. Ports are basically a means of integration into the global
economic system. As international barriers to trade have effectively been lifted by the WTO-A
(World Trade Organization-Agreements) since the 1980s, global manufacturers have vertically
disintegrated their production systems into geographically dispersed and flexibly organized
supply chain systems. The international trade regime allowed manufacturers to re-locate their
production and assembly plants to more cost-efficient locations in developing economies.
My study on port industry will help to assess the several aspects, and it will also explain
how this study is used to find the following things, they are To assess the economic development
; They are important links of hinterlands to points overseas. They facilitate movement of goods
to and from hinterland. They increase international trade (both exports and import). Increase in
exports lead to industrialization in the hinterland as well as around ports. Increase in imports lead
to increase in consumer choice and provision of goods at competitive rates. How it contributes as
Development of cities ? Most of the world’s major cities are port cities.
Ports spur the economic activities around them like banking, finance, Insurance, logistic
etc. This lead to development of cities around ports. How it will Increase in Employment ? Ports
increase employment both directly and indirectly. Direct employment refers to employment in

port related activities. Indirect employment increases due to increased industrialization and
increase in other services like banking and insurance. How it is Relatively Environment friendly
? when compared to other transportation systems, railway transportation requires twice as much
energy consumption, while road transportation requires ten times as much as sea conveyance.
During the past few decades the world has become increasingly environmentally conscious and,
with its lower energy consumption, marine transportation is obviously more environmentally
friendly than other means.
To examine the Increasing of world Economic Integration ; Globalization has been
partially successful due to cheap transportation facilitated by ports. What is the role of port
industry in infrastructure development ? Increase the economic activity between hinterland and
ports lead to development of infrastructure including railways, roads & inland waterways. Such
infrastructure makes our exports more competitive and as a spillover effect provide world class
infrastructure to citizens.
As studied the above points, the ports are important for socio-economic development of
the region thus nations are moving for “Port Led Development”. China has also experienced
such development. China developed its industrial towns near ports to facilitate this export led
growth. It has proposed Maritime Silk Route to catalyze port led development.

1.3. OBJECTIVES OF THE STUDY:
This study examines the current position or status of the port Industry in India. This study will be
focused on the some of the objectives, which I have mentioned as follows.
a) To study the encouragements facilities towards the port Industry: As compared with
other ports across the world, the numbers are not encouraging. In the past few years, the
government has taken several initiatives to increase its investments by developing new ports,
augmenting existing facilities, mechanizing ports and improving connectivity and logistics.
Despite these government initiatives, India’s port sector has not been comparable with other
ports internationally.
b) To study the Origin and History of the Port Industry: Every industry has the specific
significance in the world. The significance would be come by birth of the industry or it
would become after some time. It is needed to study how the industry was developed. This
study will explain about the complete history of the Origin of the Industry.
c) To examine the role of Port Industry in the Economy: The contribution of the various
sectors will be high as like as that the Port Industry has also been contributing so much to the
Indian Economy. This study explains the role of Port Industry in Economy.
d) To study the SWOT Analysis of Industry: Every industry has the Strengths, Weaknesses,
Opportunities and Threats these things will be explained by this study. Several challenges
faced by this sector have proved to be disadvantageous to the growth of this sector. Port
projects by their very nature have long gestation periods and therefore the developers have
difficulty in accessing financing from banks and financial institutions. Lack of easy financing
options for port projects is also caused by delays in obtaining government approvals,
environmental clearances, as well as compliance with coastal regulations.
Private participation in this sector has been extremely cautious. The financial viability of
port projects is a major deterrent for private developers as well as financiers. Greenfield port
projects are usually in remote locations and considerable government level support is
required to create basic infrastructure for site access.

e) To assess and recommend the supply and usage of man power: The developers of port
projects often need to address the supply of manpower and their housing and infrastructure
for habitation. Most of the major ports are overstaffed with unskilled and untrained labor and
the development of such ports may suffer due to frequent labor strikes, inefficiency and low
labor productivity. State agencies often fail to meet expected timelines for the development
of access infrastructure, thereby making the developed port virtually unusable.
f) To estimate and suggest the government control on Port Industry: Existing ports in
India tend to be government owned and controlled. These ports were set up many years ago
and need to be upgraded at considerable cost. There have been indications that the design of
existing ports is inadequate to meet the current requirements for quick turnaround and
handling of increased volumes, causing delays in the feeding and evacuation of cargo and
consequently lowering the efficiency and productivity of vessels.
g) To resolve the problems faced by industry: Some of the challenges faced in respect of
existing ports include inadequate road networks within the port area, inadequate cargo-
handling equipment and machinery, inefficiency due to poor hinterland connectivity through
rail, road, highways, coastal shipping and inland waterways, inadequate navigational aids,
facilities and IT systems, insufficient dredging capacity, lack of technical expertise and a lack
of equipment for handling large volumes. The turnaround time at ports in India therefore
remains abysmal.
h) To examine the world and India's top performing sea ports: In order to study the various
aspects in the Port Industry, it is needed to study the strengths and weakness and as well the
financial status of the top performing ports in India and World. This study will explain the
situation of those sea ports by which other sea ports also go through with the policies which
have made up for the top performing sea ports in India and World at Large.
The study of Port Industry at large is very important to showcase the real and actual scenario of
the port Industry in India, and then only there is a possibility to deploy the various concepts to
increase the effectiveness in the policies of the Port Industry in India.

1.4. RESEARCH METHODOLOGY:
There are some utilities which should be gone through the water way only, at that time; their role
will be come into force. We have to consider so many things while studying the Sea port
Industry in India, in that context we need to collect the data from the various sources. We need to
estimate or assess how the port industries were performed in the past or recent past days. And we
have to estimate the future course of action also. There are mainly two kinds of Data Sources
called Primary Data Source and Secondary Data Source.
A. Primary Data: The data which will be taken from the primary sources is called as the
Primary Data. This primary data will be fresh data and directly collects from the respondents for
the research purpose. The methods for collecting the primary data are as follows
o Observation Method
o Interview Technique
o Questionnaire
o Schedules and etc.
B. Secondary Data Source: The data which will be taken from the secondary sources is called
as the secondary Data. This secondary data won’t be fresh data and indirectly collects from the
respondents for the research purpose. The methods for collecting the secondary data are as
follows
o Websites
o Government institutions data
o Published data (Articles, Chapters and Textbooks and etc.) and etc.
By considering the various things, we can find out the loopholes in our port industry. The
government can know what kind of steps to be taken for resolving the problems in Port Industry?
They can assess how long the Port Industry can be survived? And some more things will be
assessed by the government and interested people. I have taken the Secondary data for my
research work. I have taken the data from the government official websites, research articles
published by authors of various countries, the official data released by the government affiliated
institutions or autonomous bodies and other resources.

1.5. LIMITATIONS OF THE STUDY:
The study of Port Industry is the vast in its nature; we cannot study the entire Port Industry as a
single study. We need to cut short the topics and analyze the actual scenario of the Port Industry.
In that context, we need to do the real research rather than the empirical research. The empirical
research is not reliable in its nature, the empirical research data may be manipulated by anyone.
That would be designed as per their concern and interest it doesn't give the actual image of the
any content. As like as that, this research may be not be give that much reliability but it will give
the past experience of the Port Industry in the country and how that will be in the future. This
study will be used for the more persons like me to study in extension of this part. The SWOT
analysis of the Port Industry i.e. Analysis of Strengths, Weakness, Opportunities and threats for
the Port Industry are to be estimated based on the assumptions after studying the all the required
things. It may not be applicable as it is, there should be some sort of limitations regarding to
applicability. Apart from the above limitations, my study on Port Industry will tell about the
exact Performance of Port Industry in India and World at large, problems faced by them and etc.
things. My study will refer some of the actions which have to be taken into consideration for
increasing the Port Industry performance in terms of trade, growth and size etc.

CHAPTER – II
2.1. ORIGIN OF THE PORT INDUSTRY
2.2. HISTORY OF THE PORT INDUSTRY
2.3. RECENT TREDNS IN PORT INDUSTRY
2.4. TOP 10 SEA PORTS IN WORLD
2.5. TOP 10 SEA PORTS IN INDIA

2.1. ORIGIN OF PORT INDUSTRY:
Ports are points of convergence between two geographical domains of freight circulation
(sometimes passengers); the land and maritime domains. While the maritime domain can involve
substantial geographical coverage related to global trade, the land domain is related to the port’s
region and locality. The term port comes from the Latin PORTUS, which means GATE OR
GATEWAY. Historically, ports emerged as safe harbors for fishing and those with convenient
locations became trade hubs, many of which of free access and designed to protect trade. As
such, they became nexus of urbanization with several becoming the first port cities playing an
important role in the economic welfare of their regions. Today, many of the most important cities
in the world owe their origin to their port location. The port is a multidimensional entity at start
anchored within geography, but also dependent on its operations, governance structure and
embedded within supply chains.
Considering the operational characteristics of maritime transportation, the location of
ports is constrained to a limited array of sites, mostly defined by geography. Since ports are
bound by the need to serve ships, access to navigable waterways has been historically the most
important site consideration. Before the industrial revolution, ships were the most efficient
means of transporting goods, and thus port sites were frequently chosen at the head of water
navigation, the most upstream site, such as London on the Thames, Montreal on the St.
Lawrence River or Guangzhou on the Pearl River. Ship draft was small; so many sites were
suitable to be used as ports. Sites on tidal waterways created a particular challenge for shipping
because of the twice-daily rise and fall of water levels at the berths, and by the 18th the
technology of enclosed docks, with lock gates was developed to mitigate this problem. Because
ship transfers were slow, with vessels typically spent weeks in ports, a large number of berths
were required. This frequently gave rise to the construction of piers and jetties, often called
finger piers, to increase the number of births per given length of shoreline.
2.1. (A) Port Functions and Traffic: The main function of a port is to supply services to
freight (warehousing, transshipment, etc.) and ships (piers, refueling, etc.). Consequently, it is
misleading to consider a port strictly as a maritime terminal since it acts concomitantly as a land
terminal where inland traffic originates or ends. Ports are at start cargo-oriented facilities
involving a wide array of activities related to their management and operations. The cargo base

of a port can expand through the intensification of its fundamental hinterland, the expansion of
its hinterland to new areas, and the development of transshipment. In addition to significant
cargo-related functions, many ports are also involved in other activities such as fishing, ferries,
cruises, and recreational activities (e.g. marinas).
Ports are becoming increasingly regional in their dynamics, which represents a new
development from their traditional local function, namely as industrial complexes. For instance,
the port of Hong Kong owes its wealth to its natural site and its geographical position of a transit
harbor for southern China. A similar function is assumed by Shanghai for central China with the
Yangtze river system. Singapore, for its part, has been favored by its location at the outlet of the
strategic Strait of Malacca and is, therefore, a point of convergence of Southeast Asian
transportation. More than 90% of the traffic it handles is strictly transshipments (cargoes moving
from on maritime service to another without exiting the port terminal). New York has
traditionally acted as the gateway of the North American Midwest through the Hudson or Erie
Canal system, a function which Western European ports such as Rotterdam or Antwerp perform
with their access to the Rhine system.
A port throughput is linked to a variety of local and regional industrial activities as the
largest ports in the world are gateways to massive industrial regions. However, comparing ports
on a tonnage basis requires caution as it does not indicate the nature and the value of the cargo.
For instance, a mineral port (e.g. iron ore), an energy port (e.g. coal or oil), and a commercial
port (containers) could handle a similar tonnage but significantly different value levels. They will
also be related to different commodity chains; bulk ports are very different entities than container
ports. In terms of the freight they handle, ports can be classified into two categories;
monofunctional ports and polyfunctional ports.
Monofunctional ports transit a limited array of commodities, most often dry or liquid
bulks (raw materials). The oil ports of the Persian Gulf or the mineral ports of Australia, Africa,
and in some measure of Canada are monofunctional ports. They have specialized piers designed
to handle specific commodities and where the flows a commonly outbound, implying that they
are usually load centers. Polyfunctional ports are vast harbors where several transshipment and
industrial activities are present. They have a variety of specialized and general cargo piers linked
to a wide variety of modes that can include containers, bulk cargo, or raw materials.

About commercial 3,700 ports are in operation worldwide, but only less than one
hundred ports have global importance. There are about 600 container ports with 200 handling
traffic above half a million TEU. Maritime traffic thus has a high level of concentration in a
limited number of large ports, a process mainly attributed to maritime access and infrastructure
development. Major ports have established themselves as gateways of continental distribution
systems and have access to high capacity inland freight distribution corridors, notably rail. Such
a position is very difficult to challenge unless a port is facing acute congestion forcing maritime
shipping companies to seek alternatives. Gateways have seen the development of port-centric
logistics activities that support export and import-based activities. Container ports have reached a
stage in their evolution where dissociated logistics functions are reinserted within the port area.
Depending on the context, port-centric logistics can take three functional forms; export-oriented,
intermediate, and import-oriented.
2.2. (B) Port Authorities and Port Holdings: Ports are subject to active governance. Due to the
growing level of complexity of port operations, public port authorities were created at the
beginning of the 20th century. For instance, the London Port Authority, the world’s first, was
established in 1908 by consolidating all the existing harbor facilities. Such a governance
structure became a standard that was adapted to many other ports, leading to adaptation to local
political and jurisdictional realities. For North America, the States of New York and New Jersey
created in 1921 the Port Authority of New York and New Jersey, which has become one of the
world’s most diversified port authorities with a portfolio including port facilities, bridges,
airports, and public transit systems. Administratively, port authorities are regulating
infrastructure investments, its organization and development and its relationships with customers
using its services.
Port Authority: An entity of state or local government that owns, operates, or otherwise
provides wharf, dock and other marine terminal investments and services at ports.
The main rationale behind the setting of many port authorities was their ability to manage
more efficiently port facilities as a whole rather than privately owned and operated terminals.
Since port facilities were becoming more complex and capital intensive, it was perceived that
public agencies would be better placed to raise investment capital and mitigate the risk of such
investments. Port authorities tend to be vertically integrated entities as they are involved in most

of the activities related to port operations, from the construction and maintenance of
infrastructure to the marketing and management of port services. Yet, their activities were
limited within their jurisdictions, an attribute that became increasingly at odds with the
transformations of the maritime shipping industry through globalization.
Occasionally, terminals were leased to private companies but throughout the greater part
of the 20th century, public ownership and operation of ports were dominant. Most port
authorities are owned by federal, state or municipal agencies. From the
1980s, privatization marks a reversal in this trend since many became inefficient, unable to cope
with market expectations (performance, reliability, and quality of service) and provide adequate
financing for infrastructure and equipment becoming increasingly capital intensive. As public
agencies, many port authorities were seen by governments as a source of revenue and were
mandated to perform various non-revenue generating community projects, or at least to provide
employment.
The emergence of specialized and capital-intensive container terminals servicing global
trade has created a new environment for the management of port terminals, both for port
authorities and terminal operators. Port authorities are gradually incited to look at a new array of
issues related to the governance of their area and are increasingly acting as cluster managers,
interacting with a variety of stakeholders and marketing the port. With the availability and
diffusion of information technologies, port authorities have been proactive in developing port
community systems enabling many key actors to better interact and share information, such as
customs, freight forwarders and carriers. For port operations that have conventionally be
assumed by port authorities, an increase in the role of private operators has been a dominant
trend where major port holdings have emerged with the purpose to manage a wide array of
terminals, the great majority of which are containerized.
Port holding: An entity, commonly private, that owns or lease port terminals in a variety of
locations. It is also known as a port terminal operator.
In an era characterized by lower levels of direct public involvement in the management of
transport terminals and port terminal privatization, specialized companies involved in the
management of port terminals are finding opportunities to develop. They thus tend to

be horizontally integrated entities focusing on terminal operations in a variety of locations. As of
2013, port holdings accounted for over 58% of the world’s container port capacity. The main
tool for global port operators to achieve control of port terminals has been through concession
agreements. A concession agreement is a long-term lease of port facilities involving the
requirement that the concessionaire undertakes capital investments to build, expand, or maintain
the cargo-handling facilities, equipment, and infrastructure to satisfy a minimum level.
2.2. HISTORY OF THE PORT INDUSTRY:
17th century: It began with Stora Hamnkanalen: The first harbor to be built in Gothenburg
was on the Stora Hamnkanalen canal, which was dug out in the 1620s. However, it wasn't a port
in the traditional sense. The water was so shallow that larger ships were forced to anchor
offshore, beyond Klippan, or at Gamla Varvet (now Stigbergskajen). The goods were then
transferred onto barges which transported them to Stora Hamnkanalen, to the storage yards in
Majorna, or to quays further up the river. Exports comprised largely iron and timber.
18th century: The East India Company and the East Indiaman Gotheborg: It was well into
the 18th century before trade with East Asia really gathered momentum. This was due largely to
the Swedish East India Company (SOIC), which was founded in 1731. A Royal Charter granted
the company certain privileges, including the right to all Swedish trade and shipping east of the
Cape of Good Hope and a stipulation that all voyages should start and finish in Gothenburg.
The company imported a wide range of goods from China, the most important of which were tea,
silk, porcelain, lacquer ware and spices. Initially, trading proved successful and the company
prospered although it gradually went into decline during the latter half of the 18th century. The
company was finally closed down in 1813.
The emigration era: The number of people emigrating increased at the beginning of the 1850s
following the discovery of gold in California. From the end of the 1860s it was common to sail
from Gothenburg to the USA via Hull in England. The flow of emigrants reached its peak in the
1880s, which led to a need for larger ships that could carry more passengers
19th century: Port of Gothenburg becomes a major port: In the middle of the 19th century,
ships began to grow in size and thanks to steam power they could make their way up the Gota

Alv River. This made it necessary to construct quays along the river. The first modern riverside
quay was Stenpiren, which was completed in 1845. The engineering company Eriksbergs
Mekaniska Verkstads AB was founded in 1850 and in 1871 it began building ships adjacent to its
workshops.
Industrial age and the port: During the second half of the 19th century, Swedish export
industry developed quickly, resulting in higher freight volumes at the port. Between 1888 and
1902, Masthuggskajen was built and was the first quay that could handle oceangoing vessels.
The fairway was dredged to a depth of 7 meters and rail tracks were laid along the quays. The
Port of Gothenburg was beginning to grow in importance.
20th century until now: Swedish America Line, world wars and bananas: The port needed
to grow and this meant expanding across the river on Hisingen. Construction of
Sannegardshamnen began in 1908 and it was completed in 1914. For many years it was the
central harbor for the import of coal and coke. After the end of the Second World War, the oil
harbors took over as fuel harbors and Sannegardshamnen became the main harbor for
conventional freight to European destinations. The area is now owned by the City of
Gothenburg.
The port during the Second World War: The war years brought both a rise and fall in flows at
the Port in Gothenburg. Manufacturing companies and the shipyards were working flat out whilst
conventional trade had declined. The Port of Gothenburg was strategically important and in the
light of the fact that it could potentially be used by the Germans, plans were put in place in
spring 1944 to blow up the Gota Alv Bridge and by doing so block the entrance to the port.
During the war, Frihamnen was the scene of two prisoner exchanges, one on SS Drottningholm
and the other on MS Gripsholm. Between 1942 and the end of the war the vessels were chartered
by the US government and the Red Cross and served as exchange vessels for prisoners of war,
diplomats and other civil internees. The vessels were granted safe passage and travelled across
the oceans fully lit.

In Europe the five busiest ports are: 1. Ports of Rotterdam, the Netherlands. 2. Ports of
Antwerp, Belgium. 3. Ports of Hamburg, Germany. 4. Ports of Bremen-Bremerhaven, Germany.
5. Ports of Felixstowe, UK.
2.3. RECENT TRENDS IN PORT INDUSTRY:
Technology provider Navies has identified six key trends it believes will be driving the shipping
industry over the next year. The company, part of Cargo Tec Corporation, highlights
collaboration and data standardization, smart containers, trade wars, increased IT spend,
automation gains and capacity management as being key over the coming 12 months.
Collaboration and data standardization: According to Nevis’s “Working as one” report more
than half of respondents said their operational performance would improve by at least 50 per cent
if they could share their real-time operational information. Seventy per cent expect real-time
collaboration between shipping lines and terminals to occur within the next five years. Younus
Aftab, Navis’s chief technology officer predicts that more industry leadership will be required on
issues such as data standards stating that shared understanding and knowhow will improve
performance.
Smart containers: Navis believes that the use of smart containers will take off in 2019 as
shipping begins to run trials of the technology. The industry is already seeing progress with
Maersk announcing investments in disposable tracking devices and sensors whilst Traxens plans
to deploy 100,000 smart containers by the end of 2019.
Trade wars: According to Navis, the rise in trade protectionism tops the list of concerns with
one third of executives reporting being extremely concerned about trade tensions and a further 36
per cent saying they were concerned.
Despite these fears, the industry is cautiously optimistic about the global business environment
for world trade and 82 per cent anticipate either improved profitability over the next 12 months
or continued stabilisation and reduced losses.

IT spend: According to Navis’s Business Bellwether survey, 90 per cent of respondents believe
their organisations will increase technology spending with much of this spend targeted at the
adoption of new technologies.
Automation gains: Pressure from customers, rising labour costs, competition and maturing
technology have amplified the demand for terminals to invest and automate. A recent DS
Research report reveals that 60 automation projects are planned for the next five years, which
will create a combined capacity of 90 million TEU.
Capacity management: Implementation of the latest lashing rules will see owners and ocean
carriers seeing opportunities to increase cargo intake. International Maritime Organization rules
to at least halve greenhouse gas emissions by 2050 will motivate shipping lines to gain
advantages by continuing operational cargo and vessel tracking and analysis.
2.4. TOP 10 SEA PORTS IN WORLD:
Ports are the multipurpose regions maintained for secure, safer and reliable voyages of ships. A
place or location at sea coast which is mainly made available for the docking purpose of a ship or
for transferring people or cargo is termed as a port. There are a large number of ports constructed
and operational throughout the world to serve excellent waterway transportation. Ports can be
ranked in world ranking on many criteria such as Cargo volume, Container size, etc. The
handling capacity of ports is measured in terms of TEU (Twenty-foot Equivalent Units). Based
on this unit of calculation, we have rated 10 ship ports as the biggest ports in the world.
Incidentally, a majority of these rated marine ports come under the Asian continent and on
further narrowing of this statistic, mostly emerge from a single country – China.
It is to note that the list of the largest ports in the world is subject to constant alteration.
This is mainly because of the development taking place in each and every country across the
globe, with respect to marine cargo transportation and commercial networking. Below are the top
ten biggest ports as per the cargo volume throughout the world.
1. Port of Shanghai, Shanghai China: Having a total of five working areas, the port of
Shanghai became the biggest port in the world, surpassing the Port of Singapore. It is located in
Shanghai, China. That year alone, around 29 million TEUs were handled by the port of

Shanghai, which has both – a sea as well as a river port. The port of Shanghai is a source of great
economic activity in the Yangtze River area which has helped further the economic status of
regions like Zhejiang, Jiangsu and Henan.
It has a capacity of handling cargo of about 744 million tones, which allows efficient
management of 32.5 million containers of dimension equal to standard TEUs of containers
simultaneously.
It is stretched at an area of 3,619 km² at the delta or convergence of Yangtze River and
the port is owned by International Port Group in Shanghai (SIPG).
The port involves three most important container port areas within it located at
Wusongkou, Waigaoqiao and at Yangshan with a total of 125 berths. The stretch of the quay
totals to approximately twenty kilometres.
One-fourth of International trade from china is carried out from this port and on an
average; about 2,000 of container ships are served by this port on a monthly basis.
2. Port of Singapore, Singapore: Once rated as the world’s largest port, the port of Singapore
has slipped a couple of places and is now ranked second in the same category. From the
Singaporean economic perspective, the port of Singapore plays a very important role as it caters
to the re-export market on a mammoth scale.
The Singapore port is connected to over 600 ports spread around more than 100
countries. In terms of its handling, the ship port handles a fifth of the global cargo containers and
is responsible for the transit of nearly 50% of the global crude oil supply.
The cargo handling capacity of the Port of Singapore is about 537.6 million tonnes.
Annually on a total, about 140000 vessels are received by this port. PSA Singapore with joint
collaboration with Jurong port manages the port as well as various port terminals.
The locations of major port terminals of Port of Singapore are at Pasir Panjang, Tanjong
Pagar, and Sembawang. Keppel, Jurong and Brani. It is house to about two hundred four quay
cranes and plenty of gantry cranes. Currently, this terminal is under development and projected
to be stretched out to 15 more berths and become operational in the near future.

3. Port of Tianjin, Tianjin China: The Tianjin port in China is ranked third in the list of biggest
ports in the world. The Tianjin port is the third-largest port in China and the single-largest port in
the Northern part of the country.
With the latest development in shipping industries, the number of cargo increases in the
aggregate to an average of 5.3% and containers increases by 6.2%.
The cargo handling capacity of this port is such that it can handle cargo of about 476
million tones at a time, with a low value of a number of standard TEUs dimension containers of
12.3 million containers can be transported.
This port, operated by Tianjin Port Group of companies, is constructed at outlet of a
North China river named Haihe River with a combined area of land and water of 131 km² and
336 km² respectively to serve as an interconnector between 500 ports of about 189 countries. On
an aggregate, this Chinese port features 159 interconnected berths to form an excellent port
network.
4. Port of Guangzhou Guangzhou, China: The largest port in Southern China, the Guangzhou
port enjoys connectivity with more than 300 ports in almost 100 countries. The port forms the
mainstay for the industrial belt found in the Guangxi, Yunnan, Hunan and Jiangxi regions. The
port of Huangpu also forms a part of the Guangzhou port.
There is a little difference between the capacity of cargo handling of Port of Tianjin and Port of
Guangzhou. The port of Guangzhou can handle cargo of even more than 460 million tonnes, this
cargo handling capacity ranks it at number four in the top-ranking order. In its beginning stage in
1999, this port was constructed in between the delta of Perl River.
In its initial stage, it was made to handle only a hundred million tons of cargo but this
capacity experience growth and expansion so that the total cargo handling capacity reaches to the
present capacity of cargo of about 460 million tonnes which more than four times the capacity of
100 million tonnes in 1999. This expansion in port capacity was an invitation to more trade from
these ports and increased cargo traffic.

The four key areas of this port which are the busiest port location are namely: Downtown
Port, Xinsha Port, Huangpu Port and Nansha Port Area. If the top order of ports is set on the
basis of their loading and discharging especially for coal then this port in China tops the queue.
5. Port of Ningbo, Ningbo-Zhoushan, China: Formed as a collaborative venture between the
Ningbo port and the Zhoushan port in the year 2006, the Ningbo-Zhoushan port is the second-
largest marine port in the world.
Catering to three rivers – the Yangtze, the Yong and the Qaintang, the port expected a
huge boost because of construction of a new terminal.
The Port of Ningbo, Zhejiang, with a handling capacity of more than 453 million tonnes
of cargo is the next in the order of biggest ports around the globe with 15.6 million TEUs value.
The main port areas of this port are port areas of Beilun, Ningbo, Zhenhai, Chaunshan
and Daxie and this port is operated by Ningbo Port Group. It comprises of 309 berths which
interconnect a huge number of ports (about 600 ports in all) among 100 countries.
The recent merging of this port and the Port of Zhoushan resulted in enhancement of
combined TEU capacity of the two ports which reached a value of 16.83 million TEUs.
6. Port of Rotterdam Rotterdam, The Netherlands: The Port of Rotterdam bears two titles
first of the largest port of Europe and a second one of the sixth biggest port in the world.
It safely handles 441.5 million tonnes of cargo. The approximate stretch of this port
figures as 12426 hectares to a 42 kilometres length. This port has an industrial complex within its
environs. PoRA the outstanding port authority of Rotterdam, owns, manages and operates this
port.
Port of Rotterdam is the deepest port in north-western Europe and allows deep docking of
ships. The regional government is carrying out a development programme for this port which
approximately doubles its cargo handling capacity.
The European port served as the largest port in the world for 42-years between 1962 and
2004 before it was surpassed by Singapore and Shanghai. The Rotterdam port is the largest port
in the whole of Europe.

7. Port of Suzhou: After reaching cargo handling capacity of 428 million tonnes, the Port of
Suzhou became the seventh biggest port throughout the world. This port also has high ranking
order when ports are ranked as per their business and this port is placed in categories of busiest
inland river ports around the globe.
Suzhou Municipal Government owns and manages the port functionalities. It is
constructed on Yangtze River at its lower reach with major port areas namely Changshu,
Zhangjiagang and Taicang ports.
These port areas comprise of 224 berths in all and transact with more than hundreds of
national as well as international shipping routes. This port is employed mainly for the
transportation of various construction materials and coal. Suzhou Harbour Administration
Department manages all the activities over the port.
8. Port of Qingdao Qingdao, China: The World’s largest iron ore port or “the Port of Qingdao”
was established at the entrance head of Bay of Jiaozhou of Shadong Peninsula and ordered at the
eighth position in world’s biggest ports ranking as per cargo capacity.
This port is managed by a state port group named Qingdao City Port Group and is self-
sufficient in handling cargo of about 400 million tonnes or even more. It not only holds the rank
of the eighth biggest port but also the largest Chinese port for crude oil transportation.
This port was developed by merging three ports namely oil port of Huangdao, Qingdao
Old Port and the new port at Qianwan. This port interconnects about 130 countries around the
globe through a network of about 450 ports. This is the only port which is furnished well with all
high-tech facility as well as well-established Industrial zone in its locality.
9. Port of Dalian, China: In the order of top ten biggest ports of the world, the ninth position is
secured by the port in Liaoning province of China, called the Port of Dalian, handling more than
303 million tonnes of cargo.
Dalian Port Company owns this port as well as responsible for all the concerned port
activities. There are about eighty berths and seven significant areas of Dalian Port are
Daliangang, Ganjinzi, Dalianwan, Nianyuwan, Xianglujiao, Dayaowan, Heizuizi and Siergou
which connects more than ninety-nine shipping lines around the globe.

It is moreover a regional port and responsible for almost all the regional transportation in the
vicinity.
10. Port of Busan Busan (South Korea): The Port of Busan, also known as Pusan, doubles as
South Korea’s largest port and its second-largest city. The 10th biggest port in the world, the port
of Busan is situated at the Naktong River and forms a major commercial getaway between the
Pacific Ocean and the countries belonging to Eurasia.
Naktong River Delta is where the Port of Busan is located. The handling capacity of this port is
about 298 million tonnes of cargo.
Busan port authority manages, operates and is responsible for the proper functioning of
this port. Port of Gamcheon and Dadaepo along with South and North ports are the key ports
which the Busan Port comprises of.
It is a major port of South Korea as a major portion of the country’s fishery production;
export of bulk freights and container freights is catered by this port alone. The catchment area
over which this port is stretched is figured out to be 840,000 m² and can handle 169 vessels at the
simultaneously.
On a concluding note, it is not wrong to say that China tops in Port development and
management as there are seven Chinese ports in the list of top ten biggest ports throughout the
world as per their respective cargo holding capacities.
Chinese Port of Shanghai topped the list due to its highest cargo carrying capacity among all the
ports developed till date. This ranking of the ports is made on the basis of container handling
capacities in million tones. These ports have cargo handling capacity varying from cargoes of
298 million tons to 744 million tons. This is one basis for ranking the world’s top ten ports
whereas they can also be ranked on the basis of other standards such as standard cargo
dimensions in TEUs. The ranking of ports as per their respective TEUs capacity is:

1) Shanghai port at Yangtze River (China)
2) Singapore Port at Malacca Strait (China)
3) Shenzhen Port at Perl River Delta (China)
4) Hong Kong SAR at Perl River Delta (China)
5) Ningbo – Zhoushan Port in Zhejiang (China)
6) Port of Busan in Korean Strait (South Korea)
7) Port of Qingdao in Yellow Sea (China)
8) Guangzhou port at Perl River Delta (China)
9) Jebel Ali Port in Arab Penisula (United Arab Emirates)
10) Tianjin Port in Yellow Sea (China)
Thus, also in the ranking of ports according to the number of units of standard dimension
containers transported through ports, China dominates the list
2.5. TOP 10 SEA PORTS IN INDIA:
The nine coastal Indian states Gujarat, Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu,
Andhra Pradesh, Odisha and West Bengal are home to all major and minor ports of India. The
long coastline of India forms one of the biggest piece of land into a body of water,These twelve
major Indian Ports are handle a large volume of cargo traffic and container traffic.
There are total 13 major sea ports of India, out of 12 are government and one, Ennore
port of Chennai is the corporate one. Ennore Port is one of the major port of India located at
Coromandel Coast of Tamil Nadu state along with Kakinada Port and private Krishnapatnam
Port and Mundra Port. Other 12 major ports of India are listed as follows.
1. Kandla Port – Gujarat: Gujarat host the major seaport of west coast, The Kandla Port is
situated on the Gulf of Kutch near the Gandhidham city in Kutch District of Gujarat. The Port of
Kandla is the first special economic zone in India as well as in Asia. Kandla Port is hub for major
imports like petroleum; chemicals and iron also export grains, salt and textiles. Port of Kandla is
one of the highest earning ports of India; another port in Gujarat is Mundra Port, India’s largest
private port.

Figure 2.5. (1)Kandla Port, Gujarat : Source: www.walkthroughindia.com
2. Nhava Sheva – Maharashtra: Nhava Sheva now known as Jawaharlal Nehru Port is the
largest container port in India, situated at the mainland of Konkan area across the Navi Mumbai
Maharashtra. Jawaharlal Nehru Port is the king port of Arabian Sea at west coast and handle a
large volume of international container traffic and domestic cargo traffic. The major exports are
textiles, carpets, boneless meat and main imports are machinery,vegetable oils and chemicals.
Figure 2.5. (2)Nhava Sheva Port, Maharashtra : Source: www.walkthroughindia.com

3. Mumbai Port – Selcted for Cruise Tourism in India: The Mumbai Port is located in the
mainland of west Mumbai on the West coast of India with natural deep-water harbor. Mumbai
Port is the largest port in India and handles bulk cargo traffic with its four jetties for handling
Liquid chemicals, Crude and petroleum products. International container traffic of Mumbai Port
is directed to the new and big Nhava Sheva port
Figure 2.5 (3)Mumbai Port, Maharashtra : Source: www.walkthroughindia.com
4. Marmagao Port – Goa: The main port of Goa, Marmagao port is a best natural harbors of
India located in South Goa. Marmagao port is one of the leading iron ores exporter port in India
and raw materials too.The port of Marmagao is one of the major attraction of Goa along with the
beautiful city of Vasco da Gama and international airport Dabolim. The natural harbor of Goa is
one of India’s earliest modern ports.

Figure 2.5. (4)Marmago Port, Goa : Source: www.walkthroughindia.com
5. Panambur Port – Karnataka: Panambur Port known as the New Mangalore Port, is a
seaport located near to Surathkal railway station in Dakshina Kannada district of Karnataka. New
Mangalore Port is a deep water all weather port and the only major port of Karnataka and one of
the largest port in India. Port of Mangalore export major commodities like manganese, granite
stones, coffee and cashew and main imports includes timber logs, LPG, petroleum products and
cargo containers. There is a beautiful beach at south of sea port of Panambur along with the
shore of the Arabian Sea.
Figure 2.5. (5)Panambur Port, Karnataka : Source: www.walkthroughindia.com

6. Cochin Port – Kerala: The Cochin port is one of the largest port in India and the major port
on the Arabian Sea and Indian Ocean sea route. The port of Cochin lies on two islands of
Willingdon and Vallarpadam and the largest container transshipment facility in India. Kochi Port
is equipped with maritime facilities Cochin Shipyard,Kochi Refineries and Kochi Marina.
Kochi city is famous for its traditional spices and well known as the port city of Fort Kochi
during the European colonials. It also get its individual Kochi international airport, third
international airport in the state of Kerala.
Figure 2.5. (6)Cochin Port, Kerala : Source: www.walkthroughindia.com
7. Port Blair – Andaman: Port Blair is the capital city of Andaman Nicobar Islands, a Union
Territory of India located at the juncture of the Bay of Bengal and Andaman Sea. Port Blair is
the youngest sea port in India and one of the 12 major port of the country. The only port of
Andaman islands are connected to mainland of India through flight and ship. Port Blair is the
principal hub for shipping in the islands of Andaman and the one of the most popular tourist
destination with several places of interest around like virgin beaches, scuba diving and etc.

Figure 2.5. (7)Port Blair, Andaman : Source: www.walkthroughindia.com
8. Tuticorin Port – Tamil Nadu: Tuticorin Port is an artificial deep-sea harbour and one of the
12 major ports of India. It is also the second largest port in Tamil Nadu first is Chennai Port and
one of the largest container terminal in India. The artificial port of Tuticorin is an all-weather
port and who receive a large volume of international traffic. Port of Tuticorin is a used to be best
port for maritime trade and pearl fishery on the bay of Bengal. The port city is also known as
Pearl City and is one of the beautiful sea gateways of India from Tamil Nadu state.
Figure 2.5. (8)Tuticorin Port, Tamilnadu : Source: www.walkthroughindia.com
9. Vizag Port – Andhra Pradesh: The port city Visakhapatnam is located on the southeast coast
of India in the state of Andhra Pradesh. Visakhapatnam or Vizag has one of the India’s largest
seaports and the oldest shipyard of country. The Visakhapatnam harbors are the only Natural

harbors in the Bay of Bengal shore. Kakinada Port is second port city in Andhra and
Krishnapatnam Port is a privately built deep water port in Andhra Pradesh.
Figure 2.5. (9) Vizag Port, Andhra Pradesh: Source: www.walkthroughindia.com
10. Haldia Port – West Bengal: Haldia port or Calcutta Port is a major seaport situated near the
Hooghly River in the state of West Bengal. Port of Haldia is one of the major trade center for
Calcutta and receive bulk cargoes of Chemicals, Petrochemicals and oils. Port of Kolkata is also
a base of Indian Coast Guard.
Figure 2.5. (10) Haldia Port, West Bengal : Source: www.walkthroughindia.com

CHAPTER – III
3.1. STRENGTHS OF PORT INDUSTRY
3.2. WEAKNESS OF PORT INDUSTRY
3.3. OPPORTUNITIES OF PORT INDUSTRY
3.4. THREATS OF PORT INDUSTRY
3.5. FINDINGS AND SUGGESTIONS
3.6. CONCLUSION

3.1. STRENGTHS OF THE PORT INDUSTRY:
Growth in trade of a country is an important indicator of its overall growth. Trade of a country is
an indicator of its economic condition. Internal trade of a country not only fulfills the
requirements of its different regions but also promotes balanced regional growth in the country.
Foreign trade also fulfills two objectives: providing a means for expenditure of surplus items of a
country and making available items that are not internally produced. It leads to rapid economic
progress of a country. Some of the major initiatives taken by the government to promote the
ports sector in India are as follows:
✔ As of November 2019, projects worth Rs 13,308.41 crore (US$ 1.90 billion) were awarded in
the last three years on up gradation of the major ports.
✔ As per Union Budget 2020-21, the total allocation for the Ministry of Shipping stands at Rs
1,800 crore (US$ 257.22 million).
✔ Major Port Authorities Bill 2020 was introduced in the Loksabha, which intends to provide
regulation, operation and planning of major ports in India and to vest the administration,
control and management of such ports upon the Boards of Major Port Authorities and for
matters connected therewith or incidental thereto.
✔ Net profit at major ports increased from Rs 1,150 crore (US$ 178.4 million) in FY13 to Rs.
3,413 crore (US$ 529.6 million) in FY18, while operating margin increased from 23 per cent
to 44 per cent.
✔ In May 2018, Ministry of Shipping allowed foreign flagged ships to carry containers for
transshipment.
✔ In March 2018, a revised Model Concession Agreement (MCA) was approved to make port
projects more investor-friendly and make investment climate in the sector more attractive.
The strengths of Port Industry are as follows
3.1. (A) Water transport has been playing an important role in Indian economy since time
immemorial. It is an easy and cheap means of exports and imports of heavy items. It is in this
context that the role of ports becomes all the more important. A port is a gate for entering into
land from sea. In fact, a port is a place in a waterway where a ship can stop for loading and
alighting goods. Ports are the nodal points for land and sea trades.

Of the total sea-borne trade of India, more than 85 per centers shared by Mumbai, Kolkata,
Cochin, Chennai and Visakhapatnam. The average ship-borne traffic in India is 35 million tons
per annum and the total optimum handling capacity of the major ports is hardly more. Any
increase in trade results in congestion at the ports.
3.1. (B) The causes for the concentration of India’s ocean-borne trade in the above-mentioned
five ports are both geographical and historical. Mumbai, Chennai and Kolkata have been centers
of administration for a long time. With the increase in population of these cities, commercial and
industrial activities also increased. During the latter half of the 19th century, the railway lines
were constructed from these ports. Thus, from political and railway centers they developed into
great ports.
3.1. (C) Although importance of ports in the trade of the country is continuously growing,
existing port structure is inadequate. It is not able to avoid the delay in pre-trade activities as well
as time taken by the ships in completing their journey. In labor and mechanical productivity,
Indian ports are inferior to other Asian ports. India’s coastline has few indentations and
consequently the country has only a few major ports of trade
3.1. (D) The southern side is deficient in harbors to accommodate the large vessels now
employed in sea-borne trade. The violence of the monsoon keeps the western ports, excepting
Mumbai, Kandla and Cochin, closed to traffic from May to August.
3.1. (E) Further, in the hinterland area, roads and railways have not expanded significantly due to
presence of the Western Ghats. The eastern coast of the country is surf-bound and has many
deltas of rivers. There is constant accumulation of sand and soil on the eastern coast, making
navigation impossible. Ships have to wait for the tides to reach Kolkata and Haldia ports.
3.1. (F) In order to improve efficiency, productivity and quality of services as well as to bring in
competitiveness in port services, the port sector has been thrown open to private sector
participation. Various areas of port functioning, such as leasing out existing assets of the port,
construction/creation of additional assets, leasing of equipment for port handling and leasing of
floating crafts from the private sector, pilotage and captive facilities for port-based industries,
have been identified for participation/investment by the private sector. It is expected that private

sector participation would result in reducing the gestation period for setting up new facilities, and
also in bringing the latest technology and improved management techniques.
3.1. (G) The government permits joint-venture formations between major port and foreign port,
between major port and minor port(s), as well as between major port and Company (ies). The
measure is aimed at facilitating port trusts to (i) attract new technology; (ii) introduce better
managerial process; (iii) expedite implementation of schemes; (iv) foster strategic alliance with
minor ports for creation of optimal port infrastructure; and (v) enhance confidence of private
sector in funding ports.
3.1. (H) Besides foreign trade, ports play an important role in internal trade. Inland water
transport in India carries about 16 million tons of goods each year. Many rivers of the country
are linked with major ports. These rivers carry important goods from ports to hinterlands to
facilitate the transportation of these goods inside the country.
3.1. (I) India has a long coastline of about 7,517 km along the western and eastern shelves of the
mainland. With 12 major ports and 187 minor ports, India ranks 16th among maritime countries
and has one of the largest merchant shipping fleets in the world. According to the Ministry of
Shipping, approximately 95% of the country’s trade by volume and 70% by value moves through
maritime transport, highlighting the importance of ports and their contribution in sustaining the
growth and development of the Indian economy.
3.1. (J) The increasing trend of Western countries moving their manufacturing functions to low-
cost countries and the fact that India need to create millions of jobs for youth joining workforce
every- year means that India could be a prospective manufacturing hub after china. This means
we also need to focus on port led development by improvement in port infrastructure
3.1. (K) Share of non-major ports to major port was notable in the year 2012-13. Major ports
handle traffic of 545.79MT and non-major ports handle 387.87MT. The percentage share of non-
major ports is 41.45. The share of minor port was 25.01 percent in 2001-02. The development of
minor ports in this region will improve the state’s share there by helping the country to attract
maritime trade.

3.2. WEAKNESSES OF THE PORT INDUSTRY:
Maritime shipping, more than any other form of transportation, benefits from economies of scale
since they have a direct impact on its operational costs. There has thus been a tendency to deploy
larger ships, particularly in container shipping, to service high volume trade routes such as
between Asia and Europe.
3.2. (A) A common issue with the application of economies of scale is that the maritime shipping
company is internalizing its benefits since they have a positive impact on its operations, while
externalizing many of the costs to other actors along the maritime transport chain. These actors,
particularly terminal operators, trucking companies, railways and distributors, are then facing the
challenge to mitigate these externalities, often with capital investment projects.
3.2. (B) Diseconomies of scale are a common economic concept stating that after a specific level
of output the input costs per unit of output are starting to rise. There is thus no incentive to
increase the output of the particular unit beyond a threshold. A fundamental issue is that although
the concept of diseconomies of scale applies to maritime shipping, port operations and hinterland
distribution, it does not involve the same threshold for each. In this hierarchy of scale economies,
airtime shipping has the highest potential, followed by terminal operations and then hinterland
distribution.
3.2. (C) Each transport segment cannot be basified to the same extent because of technical,
regulatory or operational consideration. As such, the term disadvantages of scale is used mainly
because that although the benefits of economies of scale still apply in the maritime segment of
the transport chain, these benefits are not well shared with other actors. Some actors may even be
negatively impacted by the economies of scale benefiting others.
3.2. (D) Larger ships require deeper drafts, which can limit the number of ports able to
accommodate them. Many ports terminals around the world were built to handle Panama ships,
which has been a standard scale for a century. Less port of call options can limit the commercial
appeal of larger ships since their market coverage is more limited, inciting a greater reliance on
transshipment.

3.2. (E) Insight of this trend, several ports have faced the pressure to invest in infrastructure
expansion projects, such as new cranes, yards and dredging port access to deeper drafts (with 50
feet being a common goal). These infrastructure projects are highly capital intensive and may
only result in being able to keep a similar amount of traffic being handled. Additionally, larger
ships are calling the same ports less frequently and the need to improve their load factor can
result in worsened schedule reliability.
3.2. (F) A way to increase the capacity of a ship is to make it wider, which requires cranes with
a deeper reach (a post-panamax ship has between 15 and 23 containers in width as opposed to 13
for a Panamax ship). Further, larger ships require a higher level of terminal throughput since a
greater amount of cargo must be handled roughly within the same port call time. This places
pressures on terminal operations due to a time compression of the cargo handling, requiring more
yard space and equipment.
Terminal gate access is also facing constraints as more trucks are entering and exiting the
terminal during the same timeframe. Fares that are paid by maritime shipping companies, such as
port fees, are essentially remaining the same on a per TEU basis, implying that the terminal
operator does not necessarily see a growth in its revenue with larger ships.
3.2. (G) Capital investment in infrastructure, often assumed by publically owned port authorities,
are therefore even more difficult to amortize. Larger ships could actually involve a decline in
terminal capacity because of the time compression of cargo operations larger ships impose.
3.2. (H) Supply chain constraints. These external issues are often neglected when considering
the impacts of using larger containerships since they concern beneficial cargo owners not
involved in transport operations, but in supply chain management. The coordination of supply
chains can be impacted in a significant manner, since a lower frequency of port calls imply the
necessity to hold higher inventory levels, both in warehouses and in transit.
3.2. (I) For instance, an importer facing decreasing port of call frequency, would be forced to
maintain a higher inventory level in its distribution centers to maintain a similar average lead
time and meet the expectations of its customers. More cargo being carried on a single ship also
represents a greater risk for partial loss or damage, particularly near ports, involving higher
insurance premiums.

3.3. OPPORTUNITIES OF THE PORT INDUSTRY:
With the aim to modernize country’s ports, so that port-led development can be augmented, and
coastlines can be developed to contribute in India’s growth, the government of India had
launched Sagarmala programme in 2015. The Sagarmala is a series of projects to leverage the
country’s coastline and inland waterways to drive industrial development. The concept of port-
led development is central to the Sagarmala vision. Port-led development focuses on logistics
intensive industries (where transportation either represents a high proportion of costs, or timely
logistics are a critical success factor). The flagship programme by the Ministry of Shipping will
help in reducing the logistics cost for both domestic and EXIM cargo with optimized
infrastructure investment. The government is aiming a double-digit growth rate for the country
with this programme. CARGOTALK sought veterans opinion on what opportunities Sagarmala
project opens for the maritime logistics trade. Sharing his take on how this programme will
enhance efficiency of ports with modernization of infrastructure and last mile connectivity to
major port,
3.3. (A) Port-led development is definitely a good way to achieve sustained growth in the long
run. Ports are major source of employment and since centuries, large cities have developed
around the ports due to the commercial activity which the ports created.
3.3. (B) Priority should be given to augmenting the operational efficiency of existing ports
through infrastructure modernization especially on the land side. Emphasis should be placed on
installing advanced cargo handling processes, scalability in processes and mechanisation of port
operations
3.3. (C) For trade to boost, industrial development of areas in and around the port is crucial.
Improvement of last-mile connectivity remains critical to reducing delivery lead times through
connecting major ports with industrial hubs and regions of production/consumption activity.
Heightened pace of road construction along with the development of DRFC are positive
reinforcements in this direction. Fast-pacing last-mile connectivity initiatives and developing
road and rail linkages will lead to port-led industrialization and play a key role in the
development of the economy

3.3. (D) The government plans to develop six new ports across five coastal states of India which
means more business opportunities for maritime trade Continuing the opportunities given by
Sagarmala programme, Logistics plays an important role in connectivity of export-import trade.
Sagarmala is all about connectivity. Efficient connectivity will bring about a major change in the
way the citizens life will improve
3.3. (E) The ambitious Sagarmala project will provide a needed uptick to maritime logistics trade
and position India as a global logistics hub. It has the potential to lay the foundations for the
setting up of industrial zones and logistics parks around ports. It also encompasses in its scope to
create coastal economic zones and improve employment opportunities for coastal communities
through education and training programme. The project can also fast-pace the development of
offshore energy projects in the country.
3.3. (F) The new infrastructure created under the Sagarmala programme will give logistics
service providers an opportunity to configure new logistics solutions for their customers which
will be optimized for costs and time
3.3. (G) A study released by the Ministry of Shipping estimates that the Sagarmala project can
save up to 40,000 crore per year on logistics spends by key industries. India provides a
significant potential for movement of cargo using the coastal shipping line, which is significantly
cheaper than road or rail transport. The project aims to leverage to drive industrial development,
thereby, reducing the load factor of goods transported through roads
3.3. (H) According to the Ministry of Shipping, around 95 per cent of India’s trading by volume
and 70 per cent by value is done through maritime transport. To explore the untapped potential
of long coastline of over 7,000 km, veterans throws light on the trends affects ports development.
“There is a growing trend to look into containerization and liner shipping where seaports are
concerned. Container Terminals are coming up in many regions.
However, the movement of cargoes towards new terminals is taking time due to road
infrastructure, regulatory factors, non-digitization and procedural wrangles. These factors should
be attended to as they affect the seaport development,” points Gautama.

3.3. (I) The current trends in India will see more private players participating in the sea port
developments, there is a likely hood of some consolidation happening in this space as APM
terminals is looking to sell their assets in India, under the Sagarmala project. We will see more
terminals being developed for handling coastal cargo at all major, minor and private ports.
3.3. (J) Coastal Economic Zones (CEZs) have been proposed as economic regions hosting
industrial clusters. CEZs are aimed at reducing time and costs required for export/ import
movement and domestic cargo, thus becoming a focal point of port-linked industrialization. In
addition, they have the potential to create direct and indirect employment of 4 million and 6
million respectively
3.3. (K) For sea ports to be effective and efficient, land side development is key. Ports are
efficient only when there is effective and timely evacuation else ports would be choked. CFS,
logistics parks, road and rail network are needed for ports to evacuate. Further, deployment of
advanced technological tools for seamless freight management and cargo handling are impacting
the manner in which modern seaports function.
3.3. (L) Technological disruptions & digital tools are changing functional paradigms of the
logistics industry and helping in the process of port development. Technologies like big data and
advanced GPS navigation systems are emerging as key factors in monitoring the movement of
products.
Deployment of sensors and radio-frequency identification (RFID) technology is largely helping
in tracking container movement and calculating business volumes. Implementation of advanced
data security systems to protect crucial data against cyber-attacks can also go a long way.
3.3. (M) Agreeing with the fact that digitalisation is a way ahead, The industry associations are
already collaborating with Indian Port Association to launch PCS 2.0. This is envisaged to be in
state of art digital platform which will bring stake holders together with reduction in transaction
cost and time

3.4. THREATS OF THE PORT INDUSTRY:
As compared with other ports across the world, the numbers are not encouraging. In the past few
years, the government has taken several initiatives to increase its investments by developing new
ports, augmenting existing facilities, mechanizing ports and improving connectivity and
logistics. Despite these government initiatives, India’s port sector has not been comparable with
other ports internationally. Several challenges faced by this sector have proved to be
disadvantageous to the growth of this sector. Port projects by their very nature have long
gestation periods and therefore the developers have difficulty in accessing financing from banks
and financial institutions. Lack of easy financing options for port projects is also caused by
delays in obtaining government approvals, environmental clearances, as well as compliance with
coastal regulations. Political pressure, lack of autonomy, absence of incentives, excessive
bureaucracy, and hierarchical rigidities are contributors to the current state of the Indian ports.
There are also problems with average pre-berthing turnaround time, which is around three days
and is quite high as compare to other international ports like Singapore, Hong Kong etc. These
low performance indicators are primarily because of the poor road and rail container evacuation
infrastructure from the port. Port congestion is an increasingly dangerous threat to maritime
logistics. Because of port congestion shipping companies can be forced to increase their
operational costs.
3.4. (A) Port congestion creates pressure on cargo owners, shipping lines, and in turn on port
management. The port management needs to increase efficiency in handling the ships, expand
the infrastructure of the ports, and hire more workers.
3.4. (B) Ports are an integral part of international trade. According to UNCTAD, Maritime
Logistics represents 90% percent of the entire world supply chain. But what is blocking the
efficient execution of activities between ships and ports is port congestion. And this means
shipping companies are losing time and consequentially money.
3.4. (C) Some of major costs apart from time is increased fuel consumption & at times accidents.
Every other cost that could arise from this is proportional to the time the ship spends on the port
waiting. In 2012, the National Bureau of Economic Research stated that when the ships don’t
unload and are in transit, they pay 0.6% to 2% of the value of the goods every day.

3.4. (D) While demurrage is a penalty for holding the ships longer, the cargo owner will also pay
up. Because the cargo owner pays Port Congestion Surcharge to the shipping lines. There is no
one way to calculate the Surcharge. It usually involves the cost of running the ship while waiting,
such as fuel expenses. Ships usually try to travel faster in the sea to make up for the delay in
ports. The Surcharge may be charged as a percentage of the cargo or a percentage of one TEU.
3.4. (E) According to the House Committee on Transportation and the Metro Manila
Development Authority, the Philippines lost 2.5 billion (42 million euros) Philippine pesos a day
in the year 2014 due to Port Congestion. According to Chittagong Port Authority in India,
shipping businesses stand to lose money because of congestion. Up to as much as 80 Crore
Rupees (10 million euros) a month.
3.4. (F) The port management tries to assess the volume of goods that arrive at the port.
However, the calculation can be different from when the ships arrive. But the issue now is that
the port does not have enough space to hold these ships. Which brings us to the next reason.
3.4. (G) More and more ships have to find space at the ports. That means the demand for loading
and unloading equipment is raising. Something the ports might not always be capable of
withstanding.
3.4. (H) There might be a set of locks a vessel has to go through before it can dock. And
especially here, there’s a high chance that congestion will occur. Because when vessels have to
go through locks, others will be waiting for their turn.
3.4. (I) Customs is another reason for congestion. Sometimes the procedures are very strict and
there are many reasons goods might not be cleared. When there are threats of terrorism in place
or drug control measures, it might affect the flow of goods.
3.4. (J) Reducing fleet size by at least 30 percent is a first step required in protecting the world's
fish stocks. Various plans to do this exist, such as retiring vessels, buying back permits, and
limiting entry into a fishery as others' permits expire. The United States has just completed such
an effort to reduce the size of the New England fleet. These efforts are less effective if capacity
is simply transferred from one fishery to another, such as in places like Italy, China, and Taiwan,
where conversion programs have allowed former high seas drift netters to enter other fisheries.

3.4. (K) The oceans are no longer viewed by the community of nations as a vast unregulated
void or solely as a barrier to be crossed. Not only must America exert its influence to
safeguarding its economic and security interests, we must support efforts to protect the seas and
defuse conflict that arise from competing demands for the sea's resources. This can be achieved
only through the development of a comprehensive agenda for the ocean in the 21st
century
3.4. (L) The number of endangered marine species in U.S. waters likely will not increase by
2020, assuming adequate fisheries management programs are in place. Marine management is
looking more and more to preserving ecosystems rather than individual species, broadening the
scope and improving the efficiency of marine protection measures. Changes in abundance and
distribution of one species affect the distribution of other species as well, and single species
approaches are no longer adequate for modern fisheries management. Of the 174 stocks of
marine mammals
3.4. (M) Private participation in this sector has been extremely cautious. The financial viability
of port projects is a major deterrent for private developers as well as financiers. Greenfield port
projects are usually in remote locations and considerable government level support is required to
create basic infrastructure for site access. The developers of port projects often need to address
the supply of manpower and their housing and infrastructure for habitation.
3.4. (N) Existing ports in India tend to be government owned and controlled. These ports were
set up many years ago and need to be upgraded at considerable cost. There have been indications
that the design of existing ports is inadequate to meet the current requirements for quick
turnaround and handling of increased volumes, causing delays in the feeding and evacuation of
cargo and consequently lowering the efficiency and productivity of vessels. Some ports are not
designed to cater to large or ultra large vessels, which have to be parked at a distance and cargo
fed or evacuated through smaller vessels.
3.4. (O) Some of the challenges faced in respect of existing ports include inadequate road
networks within the port area, inadequate cargo-handling equipment and machinery, inefficiency
due to poor hinterland connectivity through rail, road, highways, coastal shipping and inland
waterways, inadequate navigational aids, facilities and IT systems, insufficient dredging

capacity, lack of technical expertise and a lack of equipment for handling large volumes. The
turnaround time at ports in India therefore remains abysmal.
3.4. (P) The government has adopted measures for developing the port sector, which include the
introduction of the Maritime Agenda aimed at bringing Indian ports on par with international
ports in terms of performance and capacity. Around 352 ports have been identified to be
implemented as major ports, and it is expected that the total port capacity will be increased to
3200 million tones to handle 2500 million tons of cargo by 2020.
3.4. (Q) The issue of port tariffs has been a cause of concern in the past. To address this issue,
the government proposes to set up a single regulator – the Major Ports Regulatory Authority –
which will be responsible for formulating guidelines, principles, approach and methodology for
setting rates for facilities and services provided at port terminals. This single regulator will be set
up once the Ports Regulatory Authority Bill, 2011 is implemented.
3.4. (R) The government has introduced the captive port policy under which the government will
allow captive berths at major ports for private companies, to enable them to utilize these facilities
exclusively for their own goods. Public-private partnership (PPP) projects that were introduced
in the Indian port sector in the late 1990s are expected to be the preferred mode for developing
port terminals and other commercially viable activities in the country’s major ports.
3.4. (S) In order to encourage investment opportunities in the port sector, the government is
presently offering a special tax incentive for investments through a 10 year tax holiday to
enterprises that engage in developing, operating or maintaining ports, inland waterways and
inland ports. Foreign capital inflow has been permitted by the government through 100 percent
FDI under the automatic route for the construction and maintenance of ports and harbors. While
the government has introduced several policy measures designed to encourage growth in the port
sector, certain policy reforms are needed to accelerate the development of India’s port sector.
Such reforms should be aimed at upgrading infrastructure at Indian ports, implementing new
land policy for major ports, establishing a port regulator at all ports to monitor and regulate
services and technical and performance standards, simplifying the environmental clearance
process for port projects, establishing a special purpose vehicle for making investments in ports,
developing major new ports, and so on.

3.5. FINDINGS AND SUGGESTIONS:
(A) Findings: Warehousing and shipping plays an important role in the transport sector of
India’s economy. About 95% of the country’s trade volume is moved by sea. India has the
largest merchant shipping fleet among the developing countries. The present study aims at
measuring the benefits enjoyed and problems faced by port and warehouse users in ports and
warehouses. For this purpose, a novel analysis was made by selecting 15 years data from all
major ports as well as the New Mangalore Port Trust. The data thus collected were organized in
a simple tabular form an appropriate and novel statistical tools were employed to analyze the
data. The results and discussions were made, based on these analyses. In this chapter the key
findings are recapitulated and based on these findings a few suggestions have been
recommended to meet the challenges emanating from intense global competition and
technological changes in shipping and warehousing.
It is found from the analysis of all major ports of India witnesses for its growth of cargo handling
was the highest in Paradip port with 22.84 and the least was observed in Kolkata dock yard and
Haldia dock yard with -14.61%. The vessel traffic flow has been increased at the maximum of
15.19% in Cochin port trust and it is followed by 10.29 in Kandla port trust. All other ports
showed the poor progress in vessel traffic.
1. While analysing the container traffic, the percentage growth was at the maximum of 100%
and the minimum was recorded in Mumbai port with -36.95%. Containers occupied the
third place and Iron ore in the fourth place. On the other hand, coal progressed with 46.25
and fertilizers witnessed with 9.10 lakh tones.
2. It is divulged from the analysis of port capacities of all major ports in India showed that POL
progress was the highest in all ports and it is followed by general break bulk Cargo.
3. It is found from the analysis that traffic handled in NMPT during 2006-07 was 32.05, and it
has gradually decreased in the next two years with 36.69. But it has declined to 31.55 MT in
2010-11. Similarly the average turn around was 3.14 (in days) during 2006-07, and the same
has gradually decreased to 2.71 during 2010-11.

4. The average pre berthing retention in hours was 1.20 hours during 2006-07 and in the
subsequent year it has raised to 2.00 hours. In the year 2008-09 onwards it has maintained
with 1.00 hours till 2010-11 in NMPT.
5. Commodity-wise traffic of all major ports of India was studied under two strata viz., before
liberalisation and after liberalisation, for a period of 12 years from 1982-1993. The study
reveals that the overall progress of port operation before liberalisation was below average
with the Compound Growth Rate 4.0946 and Co-efficient of Variance 19.959. It was noted
from the table that the POL was shown a steady growth during the study period 1982-93
with an average 56280.75.
6. The analysis of fertiliser raw material witnessed with positive trend till 1991 and it has fallen
in the subsequent year with 3962 and continuously showed a poor progress till 1993.
7. While analysing the food grains progressed during pre liberalisation period, it was noted that
there is a slight variation during the study period which ranged between 1133 tonnes and
3417 tonnes.
8. The progress of coal was studied during post liberalisation period and it was witnessed
throughout the study period with commendable progress with an average of 12024.8.
9. Commodity-wise traffic at all major ports, after liberalisation period was studied by
selecting 15 years data from 1994-2008 and observed that all ports after liberalisation shown
a tremendous growth in every year with compound growth rate is 6.886 with an average of
306720.70.
10. The performance of coal during the study period showed a very good progress comparing to
all other products except POL. Similarly, the other cargo also highlights the same growth
throughout the study period after liberalization.
11. While analyzing the commodity-wise traffic at NMPT before liberalization period, POL
showed a steady growth with an average of 493.1667. Finished fertilizer showed highly
volatile progress. But the Iron ore witnessed with the tremendous growth till 1992, but is
has reduced in the subsequent year. On the other hand, the other cargo’s progress showed
with volatile progress in the pre liberalization period.
12. The traffic at NMPT after liberalization period highlights an appreciable progress in POL.
But the progress of finished fertilizer shows a slight variation. On the other hand, the Iron ore
progress also showed more volatile progress during the study period 1994-2008. The other

cargo progress has witnessed with high level of volatile progress in the post liberalization
period.
13. The commodity wise traffic at NMPT for break bulk was studied and found that the annual
growth rate progress at all major ports showed a poor progress in every year and became
worse in the year 2008 with -4.444. The annual growth rate of NMPT progress for break bulk
showed very poor from 1996-2004.
14. While analysing the progress of container traffic at all ports showed a steady growth till 1990
and it has drastically affected in the next two years and rejuvenated in the year 1993. The
progress of annual growth rate of NMPT also witnessed with same dull progress and it has
regained in the year 1992.
15. The progress of container traffic after liberalisation for all major ports showed a steady
growth and it has declined in the year 1999-2005 and again developed in the remaining years
and reached an appreciable progress during 2008. While analysing the annual growth rate of
NMPT more fluctuation was observed till 2008.
16. The import progress of commodity wise traffic highlights that POL’s import progress was
comparatively higher than other products. It is followed by coal and other cargo. The other
products witnessed with an average progress in imports of other goods.
17. It could be observed from the analysis of turnaround time of Iron ore proved that the average
waiting time is gradually decreased due to modern technology and employing queue model
in the system.
18. The turnaround time for food grains showed a steady growth and it has reached three times
higher in the year 2007-08. The average waiting time of ships carrying food grains also
decreased very efficiently in the after liberalization period.
19. While analyzing the number of hours waiting in the queue for coal in the warehouse was
studied and found that the mean arrival time for coal was very minimum in the year 1993,
and it has reached five time higher in the year 2007-08.
20. The average waiting time of the POL in the system has showed a good progress in its mean
arrival rate after liberalization period. From the analysis, it is concluded that the POL was
managed very efficiently in the NMPT by using its average waiting time of POL in the
system.

(B) Suggestions: It is found from the analysis that the total traffic handled during 2011-12 of
both imports and exports contributes 329.41 lakhs tones. Hence, it is suggested that the
segmentation for the entire port area may be laid down in a port land that sets the conditions for
ships and cargo operations at any time and any place.
1. While concentrating the vessel carrying various products like crude oil, POL, Ore, Coal,
General cargo and container will be most likely larger in future. The NMPT is however, not
suitable to handle very large of over DWT 1, 00,000 and it needs to develop the
infrastructure facilities to meet the market requirements.
2. The development of infrastructure facilities and modern handling techniques includes the
establishment of dedicated berths and jetties next to common user berth to cater for all types
of cargo flows.
3. The NMPT should be focused on extension of present cargo flows and attract new cargo
flows for all types of commodities. And the success is that all berths and jetties should be
operated by professional stevedores through modern handling technology, to satisfy claimed
demands and maintain ports overall handling of liquid, dry bulk and container cargos.
4. It is recommended that a good marketing strategy should be aimed at convincing clients to
use the ports by emphasizing on the strong point such as low fee or on carriage cost, fast
handling in port and adequate shipping services and warehouse usage.
5. While analyzing the vessel related charges, it was learnt that the Tariff Authority for Major
Ports (TAMP) sets the structure and approves tariff of major ports. This gives more
ambiguity and the clients find highly complex in the tariff structure. Hence, it is suggested
that standard charging tariff system for various services should be presented transparently.
6. The NMPT should concentrate and take more effort to develop storage area to satisfy the
warehouse uses in the sea port.
7. The NMPT commodity wise traffic were compared during pre-liberalization period and post
liberalization period and found that its overall performance witnessed with four times higher
in its progress. But, in the present era of competition, the progress is not up to the mark.
Hence, the NMPT should concentrate in the replacement of old, out dated, low capacity
cargo, handling equipment with high capacity ultra-modern. The construction of multi land
concrete roads and high axle rail lines are much essential for modern gate entry and gate out
logistic systems.

8. In order to operate efficiently, the NMPT should use information technology to integrate all
sophisticated systems in the port in a comprehensive manner. Such as GIS technology,
VTMS, AIS, RFID, CCTV, Surveillance system and other security system.
9. The analysis of turnaround time of finished fertilizer, fertilizer raw material, food grains, iron
ore, coal and POL showed better average waiting time of ship in the system during 2007-08
when compared to its progress during 1993-94.
10. Deployment of man power as again as per present practice should be entirely on needing
based / ground reality. The notional booking of staff should be avoided. The existing norms
of both ship birth day output and gang-ship output for different commodities should be
revised and new norms compatible with present modern handling facilities being fixed.
11. The capacity for handling crude oil and oil products showing a sign of over utilization which
lead to ships waiting time at anchorage. Hence, additional capacity can solve this capacity
shortage.
12. To optimize berth capacity taking generally accepted berth occupancy standards to obtain a
satisfactory level of berth occupancy at a zero or low average ship waiting time average.
13. It is suggested that centralized data exchange, standardized electronic data interchange
formats particularly, related to willing / invoicing, robust communication systems and
convenient and accessible end user interfaces will be key implementation measures to
manage peak and slack demand management.

3.6. CONCLUSION:
After globalization, India has been emerging as a modern economical country. Globalization has
its impact in the development of ports in India. There is a clear trunk towards the global
ownership and management of port terminals as witnessed by the entry of P and O lines, DP
world, Maersk-lines, PSA, etc. in certain Indian ports. This has resulted in transfer of a range of
port related activities from mainly public owned to private owned under takings. This has shown
paradigm shift and emerging new private ports within a maritime state competing stiffly with the
major ports including the New Mangalore Port Trust in attracting and diverting the cargo. Later
various means of competition is emerging among the major ports and also ports within and
outside the region. This has also compelled the New Mangalore Port Trust to pay more attention
for improvement in productivity through introducing ultra-modern infrastructure facilities in the
berth yard and warehouses. This enables the port authorities to face the prevailing tough
competition. To develop the New Mangalore Port Trust with ultra-modern facilities as
recommended in the suggestions requires heavy investment, which may be obtained from the
government of India through proper way of highlighting the needs of fund requirements by the
top authorities in the New Mangalore Port Trust, to face the prevailing cut-throat competition.
The present research is a rewarding exercise for the scholar, and the researcher will be delighted
if the policy makers in the New Mangalore Port Trust as well as the Ministry of shipping
incorporate the suggestions recommended in this research work.

A study on Sea Port Industry (An Empirical Research)

A study on Sea Port Industry (An Empirical Research)

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