For help in Logistics

1. PROJECT REPORT ON
“SEA FREIGHT IN LOGISTICS
MANAGEMENT”
K.J.SOMAIYA COLLEGE
VIDYAVIHAR (EAST)
SUBMITTED BY
SATISH K. PARATE
T.Y.B.M.S. [Semester V]
NAME OF PROJECT GUIDE
“MR. SANDIP GUPTA”
SUBMITTED TO
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2011 - 2012

2. 2
DECLARATION
I SATISH KESHAV PARATE student of K.J.SOMAIYA
COLLEGE of TYBMS (Semester 5) hereby declare that I have
completed this project on “SEA FREIGHT IN LOGISTICS
MANAGEMENT” in the Academic Year 2011-12. The Information
submitted is true and original to the best of my knowledge.
Signature of Student
(Satish k. parate)

3. 3
CERIFICATE
I SATISH PARATE student of K.J.SOMAIYA COLLEGE of
TYBMS (Semester 5) herby certify that I have completed this project on
‘SEA FREIGHT IN LOGISTICS MANAGEMENT’ in the Academic
Year 2011-12. The Information submitted is true and original to the best
of my knowledge.
Signature of the Principal of Signature of Project
The College/Institution Co-coordinator
Signature of Internal Signature of External
Examiner Examiner

4. 4
ACKNWOLEDGEMENT
An Old Chinese proverb says:
“When eating your bamboo sprouts, remember the men who planted
them.
Now that my sprouts are ready to eat, it is time for me to express
my deepest gratitude to all those who have made this possible.”
The project of “SEA FREIGHT IN LOGISTICS
MANAGEMENT” is the outcome of sincere and positive contribution.
I cannot justifiably translate their help, cooperation and guidance
extended to me in completing this project work in words. However I
shall be failing in my duty if I don’t express thanks to a few people in
particular.
I would like to thank our BMS coordinator Mr.Sandip Gupta for
giving this opportunity to prepare our self to face our future challenges.
I would also like to thank my project guider Mr.Nilesh sadekar
for giving me some suggestion to prepare this project without his
support I would have not be able to make it properly.
Again I would like to express my deep regards to our principal
Mrs.Suda Vyas.
And last but not the least I would also like to thank my family
members and friends who have helped us and supported us in all
possible ways.

5. 5
INDEX
Sr.No Particulars Page No
1. Introduction of Logistics Management 8-10
2. Shipping 11-19
3. Cargo Vessels Types 19-26
4. Different Types of Ship Size 27-28
5. Terms Of Shipment 28-33
6. Sea Transport 34-39
7. Shipping Documents 40-46
8. 3rd Party Logistics & 4th Party Logistics 47-51
9. Ports In India 52-83
10. Customs And Procedures 84
11. Multimodal Transport 85-88
12. Marine Insurance 89-95
13. Warehousing and Warehouse Management 96-100
14. Panama Canal 101-106
15. Conclusion 107-108
16. Case Study 109-110
17. Bibliography 111

6. 6
SUMMARY
The analysis of the situation on the basis of transport logistics, focused
logistics and transport affect the efficiency of our infrastructure, management,
logistics concepts, professionals and other factors discussed in depth, and how to
improve the efficiency of logistics and transport measures and suggestions put
forward in this project. Key words: logistics; transport; efficiency; factor logistics
and transport is the backbone of the entire logistics system, logistics and transport
efficiency is to reduce the total cost of logistics the main way. At present, logistics
market is just out of infancy, but the logistics and transport is still in a low
efficiency for the pending problems, identify the main factors affect the transport
efficiency to make up for its deficiencies, to promote the rapid development of
logistics industry has a positive effect. Logistics sea freight is high transport costs
in total logistics costs account for a second large proportion.
The outcome of studies identified major weaknesses in the field of
Freight Forwarding as follows:
- Inappropriate legal framework;
- Need for strengthening national and sub-regional freight forwarding
associations;
- Too many variations in the structure of companies carrying out freight
forwarding activities;
- Faulty management systems coupled with poor delegation by power;
and
- Lack of professional structures in the industry.
To overcome these problems an attempt has been made to highlight activities of
selected sub-regional training institutions that have or could develop courses for
the benefit of the sub-sector.

7. 7
The proposed module covers thirteen main areas of concern to overcome the
weakness in the field of freight forwarding is as follows:
- Elaboration on duties and responsibilities of the freight forwarder and
its relationship with intervening parties;
- Rights, duties and responsibilities of Multimodal Transport/Freight
Forwarding institutions;
- The art by packaging, marking and handling of special cargoes;
- Principles of carriage of goods by sea;
- Principles of carriage of goods by air;
- Carriage of goods by road and rail;’
- Practices of customs’ activities and port procedures;
- The art of consolidation and intermodal transport
- Freight forwarding documentation practices
- The use of incoterms
- Application of documentary credits;
- Cargo insurance; and
- Liability insurance.

8. 8
INTRODUCTION
What do the term “Logistics Management in sea freight means?
 The transportation of goods in ships, or goods sent by sea. It simply means
the Logistics is the art and science of managing and controlling the flow of
goods, energy, information and other resources like products, services, and
people, from the source of production to the marketplace. It is difficult to
accomplish any marketing or manufacturing without logistical support. It
involves the integration of information, transportation, inventory, warehousing,
material handling, and packaging. The operating responsibility of logistics is
the geographical repositioning of raw materials, work in process, and finished
inventories where required at the lowest cost possible.
Overview of Logistics
The word of logistics originates from the ancient Greek logos (λόγος),
which means “ratio, word, calculation, reason, speech, and oration”.
Logistics as a concept is considered to evolve from the military's need to
supply themselves as they moved from their base to a forward position. In ancient
Greek, Roman and Byzantine empires, there were military officers with the title
‘Logistikas’ who were responsible for financial and supply distribution matters.
The Oxford English dictionary defines logistics as: “The branch of military
science having to do with procuring, maintaining and transporting material,
personnel and facilities.”Another dictionary definition is: "The time related
positioning of resources." As such, logistics is commonly seen as a branch of
engineering which creates "people systems" rather than "machine systems".

9. 9
Military logistics
In military logistics, experts manage how and when to move resources to the
places they are needed. In military science, maintaining one's supply lines while
disrupting those of the enemy is a crucial—some would say the most crucial—
element of military strategy, since an armed force without food, fuel and
ammunition is defenseless.
The Iraq war was a dramatic example of the importance of logistics. It had
become very necessary for the US and its allies to move huge amounts of men,
materials and equipment over great distances. Led by Lieutenant General William
Pagonis, Logistics was successfully used for this movement. The defeats of the
British in the American War of Independence, and the defeat of Rommel in World
War II, have been largely attributed to logistical failure. The historical leaders
Hannibal Barca and Alexander the Great are considered to have been logistical
geniuses.
Logistics Management
Logistics Management is ‘that part of the supply chain which plans,
implements and controls the efficient, effective forward and reverse flow and
storage of goods, services and related information between the point of origin and
the point of consumption in order to meet customers requirements’.
Logistics management is applicable to public as well as private sector,
Public sector are government undertaking, government start business with and so
on. Private sector is classified into sectoral segmentation of industry. Ex.
electrical, mechanical, electronics etc.

10. 10
Business logistics
Logistics as a business concept evolved only in the 1950s. This was
mainly due to the increasing complexity of supplying one's business with materials
and shipping out products in an increasingly globalized supply chain, calling for
experts in the field who are called Supply Chain Logisticians. This can be defined
as having the right item in the right quantity at the right time for the right price and
is the science of process and incorporates all industry sectors. The goal of logistic
work is to manage the fruition of project life cycles, supply chains and resultant
efficiencies.
In business, logistics may have either internal focus(inbound logistics), or
external focus (outbound logistics) covering the flow and storage of materials from
point of origin to point of consumption (see supply chain management). The main
functions of a logistics manager include Inventory Management, purchasing,
transport, warehousing, and the organizing and planning of these activities.
Logistics managers combine a general knowledge of each of these functions so that
there is a coordination of resources in an organization. There are two
fundamentally different forms of logistics. One optimizes a steady flow of material
through a network of transport links and storage nodes. The other coordinates a
sequence of resources to carry out some project. Logistics as a concept is
considered to evolve from the military's need to supply themselves as they moved
from their base to a forward position. In ancient Greek, Roman and Byzantine
empires, there were military officers with the title ‘Logistikas’ who were
responsible for financial and supply distribution matters.

11. 11
Shipping
Shipping has multiple meanings. It can be a physical process of
transporting goods and cargo, by land, air, and sea. It also can describe the
movement of objects by ship.
Land or "ground" shipping can be by train or by truck. In air and sea
shipments, ground transportation is often still required to take the product from its
origin to the airport or seaport and then to its destination. Ground transportation is
typically more affordable than air shipments, but more expensive than shipping by
sea.
Shipment of freight by trucks, directly from the shipper to the destination,
is known as a door to door shipment. Vans and trucks make deliveries to sea ports
and air ports where freight is moved in bulk.
Much shipping is done aboard actual ships. An individual nation's fleet and
the people that crew it are referred to its merchant navy or merchant marine.
Merchant shipping is essential to the world economy, carrying 90% of
international trade with 50,000 merchant ships worldwide. The term shipping in
this context originated from the shipping trade of wind power ships, and has come
to refer to the delivery of cargo and parcels of any size above the common mail of
letters and postcards.
Ship transport is watercraft carrying people (passengers) or goods (cargo).
Sea transport has been the largest carrier of freight throughout recorded history.
Although the importance of sea travel for passengers has decreased due to aviation,
it is effective for short trips and pleasure cruises. Transport by water is cheaper
than transport by air.
Ship transport can be over any distance by boat, ship, sailboat or barge,
over oceans and lakes, through canals or along rivers. Shipping may be for
commerce, recreation or the military. Virtually any material that can be moved, can

12. 12
be moved by water, however water transport becomes impractical when material
delivery is highly time-critical. "General cargo" is goods packaged in boxes, cases,
pallets, and barrels. Containerization revolutionized ship transport in the 1960s.
When a cargo is carried in more than one mode, it is intermodal or co-modal.
MERCHANT SHIPPING
A nation's shipping fleet (merchant navy, merchant marine, merchant
fleet) consists of the ships operated by civilian crews to transport passengers or
cargo. Professionals are merchant seaman, merchant sailor, and merchant mariner,
or simply seaman, sailor, or mariner. The terms "seaman" or "sailor" may refer to a
member of a country's navy.
2005 registrationofmerchant ships (1,000 grossregistertons (GRT)and over)
per country.

13. 13
According to the 2005 CIA World Fact book, the world total number of
merchant ships of 1,000 Gross Register Tons or over was 30,936. Statistics for
individual countries are available at the List of merchant marine capacity by
country.
Professional mariners
A ship's complement can be divided into four categories: the deck department,
the engineering department, the steward's department, and other.
Deck department
An able seaman stands iceberg
lookout on the bow of the freighter
USNS Southern Cross during a re-
supply mission to McMurdo Station,
Antarctica; circa 1981.
Officer positions in the deck
department include but not limited
to: Master and his Chief, Second,
and Third officers. The official
classifications for unlicensed
members of the deck department are
Able Seaman and Ordinary Seaman.
An able seaman stands iceberg lookout on the bow of the
freighter USNS Southern Cross during a re-supply mission
to McMurdo Station, Antarctica circa 1981.

14. 14
A common deck crew for a ship includes:
(1) Chief Officer/Chief Mate
(1) Second Officer /Second Mate
(1) Third Officer / Third Mate
(1) Boatswain
(2-6) Able Seamen
(0-2) Ordinary Seamen
A deck cadet is person who is carrying out mandatory seatime to achieve their
officer of the watch certificate. Their time onboard is spent learning the operations
and tasks of everyday life on a merchant vessel.
Engineering department
A ship's engineering department consists of the members of a ship's
crew that operate and maintain the propulsion and other systems on board the
vessel. Marine Engineering staff also deal with the "Hotel" facilities on board,
notably the sewage, lighting, air conditioning and water systems. They deal with
bulk fuel transfers, and require training in firefighting and first aid, as well as in
dealing with the ship's boats and other nautical tasks- especially with cargo
loading/discharging gear and safety systems, though the specific cargo discharge
function remains the responsibility of deck officers and deck workers. On LPG and
LNG tankers however, a cargo engineer works with the deck department during
cargo operations, as well as being a watch keeping engineer.
A common Engineering crew for a ship includes:
(1) Chief Engineer
(1) Second Engineer / First Assistant Engineer
(1) Third Engineer / Second Assistant Engineer
(1-2) Fourth Engineer / Third Assistant Engineer

15. 15
(0-2) Fifth Engineer / Junior Engineer
(1-3) Oiler (unlicensed qualified rating)
(0-3) Greaser/s (unlicensed qualified rating)
(1-5) Entry-level rating (such as Wiper (occupation), Utility man, etc.)
Many American ships also carry a Qualified Member of the Engine Department.
Other possible positions include Motorman, Machinist, Electrician, Refrigeration
Engineer, and Tanker man. Engine Cadets are trainee engineers who are
completing sea time necessary before they can obtain a watch keeping license.
Steward's department
A typical Steward's department for a cargo ship would be composed of a
Chief Steward, a Chief Cook, and a Steward's Assistant. All three positions are
typically filled by unlicensed personnel.
The chief steward directs, instructs, and assigns personnel performing
such functions as preparing and serving meals; cleaning and maintaining officers'
quarters and steward department areas; and receiving, issuing, and inventorying
stores.
On large passenger vessels, the Catering Department is headed by the
Chief Purser and managed by assistant pursers. Although they enjoy the benefits of
having officer rank, they generally progress through the ranks to become pursers.
Under the pursers are the department heads - such as chief cook, head waiter, head
barman etc. They are responsible for the administration of their own areas.
The chief steward also plans menus; compiles supply, overtime, and cost
control records. May requisition or purchase stores and equipment. May bake
bread, rolls, cakes, pies, and pastries.
A chief steward's duties may overlap with those of the Steward's
Assistant, the Chief Cook, and other Steward's Department crewmembers.

16. 16
In the United States Merchant Marine, in order to be occupied as a chief
steward a person has to have a Merchant Mariner's Document issued by the United
States Coast Guard. Because of international conventions and agreements, all chief
cooks who sail internationally are similarly documented by their respective
countries.
Other Departments
Staff officer positions on a ship, including Junior Assistant Purser, Senior
Assistant Purser, Purser, Chief Purser, Medical Doctor, Professional Nurse, Marine
Physician Assistant, and Hospital Corpsman, are considered administrative
positions and are therefore regulated by Certificates of Registry issued by the
United States Coast Guard. Pilots are also merchant marine officers and are
licensed by the Coast Guard. Formerly, there was also a radio department, headed
by a chief radio officer and supported by a number of radio officers. Since the
introduction of GMDSS (Satellite communications) and the subsequent
exemptions from carrying radio officers if the vessel is so equipped, this
department has fallen away, although many ships do still carry specialist radio
officers, particularly passenger vessels. Many radio officers became 'electro-
technical officers', and transferred into the engineering department.
Life at sea
Mariners live much of their life spent beyond the reach of land. They
face sometimes dangerous conditions at sea. Yet men and women still go to sea.
For some, the attraction is a life unencumbered with the restraints of life ashore.
Sea-going adventure and a chance to see the world also appeal to many seafarers.
Whatever the calling, those who live and work at sea invariably confront social
isolation.

17. 17
Findings by the Seafarer's International Research Center indicate a leading
cause of mariners leaving the industry is "almost invariably because they want to
be with their families." U.S. merchant ships typically do not allow family members
to accompany seafarers on voyages. Industry experts increasingly recognize
isolation, stress, and fatigue as occupational hazards. Advocacy groups such as
International Labour Organization, a United Nations agency, and the Nautical
Institute are seeking improved international standards for mariners.
Ocean voyages are steeped in routine. Maritime tradition dictates that each
day be divided into six four-hour periods. Three groups of watch keepers from the
engine and deck departments work four hours on then have eight hours off watch
keeping. However there are many overtime jobs to be done daily. This cycle
repeats endlessly, 24 hours a day while the ship is at sea. Members of the steward
department typically are day workers who put in at least eight-hour shifts.
Operations at sea, including repairs, safeguarding against piracy, securing cargo,
underway replenishment, and other duties provide opportunities for overtime work.
Service aboard ships typically extends for months at a time, followed by protracted
shore leave. However, some seamen secure jobs on ships they like and stay aboard
for years.
In rare cases, veteran mariners choose never to go ashore when in port.
Further, the often quick turnaround of many modern ships, spending only a matter
of hours in port, limits a seafarer's free-time ashore. Moreover, some foreign
seamen entering U.S. ports from a watchlist of 25 high-risk countries face
restrictions on shore leave due to security concerns in a post 9/11 environment.
However, shore leave restrictions while in U.S. ports impact American seamen as
well. For example, the International Organization of Masters, Mates & Pilots notes
a trend of U.S. shipping terminal operators restricting seamen from traveling from

18. 18
the ship to the terminal gate. Further, in cases where transit is allowed, special
"security fees" are at times assessed.
Such restrictions on shore leave coupled with reduced time in port by
many ships translate into longer periods at sea. Mariner’s report that extended
periods at sea living and working with shipmates who for the most part are
strangers takes getting used to. At the same time, there is an opportunity to meet
people from other ethnic and cultural backgrounds. Recreational opportunities
have improved aboard some U.S. ships, which may feature gyms and day rooms
for watching movies, swapping sea stories, and other activities. And in some cases,
especially tankers, it is made possible for a mariner to be accompanied by
members of his family. However, a mariner’s off duty time is largely a solitary
affair, pursuing hobbies, reading, writing letters, and sleeping.
On modern ocean going vessels, typically registered with a flag of
convenience, life has changed immensely in the last 20 years. Most large vessels
include a gym and often a swimming pool for use by the crew. Since the Exxon
Valdez incident, the focus of leisure time activity has shifted from having officer
and crew bars, to simply having lounge-style areas where officers or crew can sit to
watch movies. With many companies now providing TVs and DVD players in
cabins, and enforcing strict smoking policies, it is not surprising that the bar is now
a much quieter place on most ships. In some instances games consoles are
provided for the officers and crew. The officers enjoy a much higher standard of
living on board ocean going vessels. Crews are generally poorly paid, poorly
qualified and have to complete contracts of approx 9 months before returning
home on leave. They often come from countries where the average industrial wage
is still very low, such as the Philippines or India. Officers however, come from all
over the world and it is not uncommon to mix the nationality of the officers on
board ships. Contracts average at the 4 month mark for officers, with generous

19. 19
leave. Most Ocean going vessels now operate an Unmanned Engineroom System
allowing engineers to work days only. The engine room is computer controlled by
night, although the duty engineer will make inspections during unmanned
operation. Engineers work in a hot, humid, noisy atmosphere. Communication in
the engineroom is therefore by hand signals and lip-reading, and good teamwork
often stands in place of any communication at all.
Ships and watercraft
Ships and other watercraft are used for ship transport. Types can be
distinguished by propulsion, size or cargo type. Recreational or educational craft
still use wind power, while some smaller craft use internal combustion engines to
drive one or more propellers, or in the case of jet boats, an inboard water jet. In
shallow draft areas, such as the Everglades, some craft, such as the hovercraft, are
propelled by large pusher-prop fans.
Cargo vessels types:
Until the 20th Century, ships generally, were all-purpose cargo vessels,
with very little specialisation (with the exception of tank vessels which first
appeared in the 1880s). All cargoes were carried in general purpose holds, or on
deck. Modern commercial vessels are designed and built to carry specific cargo
types. The names we give to the various vessel types reflect the type of cargo for
which they are designed and the names we give to the various vessel types reflect
the type of cargo for which they are designed and built to carry. For example, a
"bulk carrier" is specially designed to carry cargo "in bulk" and the hatch cover and
hold design is focused on the carriage of raw dry cargo goods, such as coal, grain,
iron ore and bauxite, which are simply poured into cavernous holds then grabbed
and bulldozed out at the port of discharge.

20. 20
Tankers carry liquid cargo in tanks the most obvious example is the well-
known oil tanker, but even within this generic type each tanker is specially
designed to carry a particular type of liquid cargo not just crude this generic type,
each tanker is specially designed to carry a particular type of liquid cargo, not just
crude oil. Other liquid cargoes would include petroleum products, chemicals and
yes, even wine! 2 recent hybrid designs of tanker carry Liquefied Natural Gas
(LNG) and Liquefied Petroleum Gas (LPG), both of which need to be kept under
pressure and at low temperature to maintain the cargo in a liquefied state. A further
hybrid is the Floating Production, Storage and Offloading unit (FPSO), which is
usually a large tanker (maybe a converted old VLCC, but now brand new
specialized FPSOs are being built) specifically designed for the oil industry,
working offshore where an onshore facility to process and store offshore oil is
deemed impractical.
Bulk carriers, such as the
Sabrina I seen here, are
cargo ships used to transport
bulk cargo items such as ore
or food staples (rice, grain,
etc.) and similar cargo. It can
be recognized by the large
box-like hatches on its deck,
designed to slide outboard for loading. A bulk carrier could be either dry or wet.
Most lakes are too small to accommodate bulk ships, but a large fleet of lake
freighters has been plying the Great Lakes and St. Lawrence Seaway of North
America for over a century.

21. 21
 Container ships are
cargo ships that carry
their entire load in truck-
size containers, in a
technique called
containerization. They
form a common means
of commercial
intermodal freight transport. Informally known as "box boats," they carry the
majority of the world's dry cargo. Most container ships are propelled by diesel
engines, and have crews of between 10 and 30 people. They generally have a
large accommodation block at the stern, directly above the engine room.
 Tankers are cargo ships
for the transport of fluids,
such as crude oil,
petroleum products,
liquefied petroleum gas,
liquefied natural gas and
chemicals, also vegetable
oils, wine and other food -the tanker sector comprises one third of the world
tonnage.
 Reefer ships are cargo
ships typically used to
transport perishable
commodities which
require temperature-

22. 22
controlled transportation, mostly fruits, meat, fish, vegetables, dairy products
and other foodstuffs.
 Roll-on/roll-off ships,
such as the Chi-
Cheemaun, are cargo
ships designed to carry
wheeled cargo such as
automobiles, trailers
or railway carriages.
RORO (or ro/ro)
vessels have built-in
ramps which allow the cargo to be efficiently "rolled on" and "rolled off" the
vessel when in port. While smaller ferries that operate across rivers and other
short distances still often have built-in ramps, the term RORO is generally
reserved for larger ocean-going vessels.
 Coastal trading vessels,
also known as coasters,
are shallow-hulled ships
used for trade between
locations on the same
island or continent. Their
shallow hulls mean that
they can get through reefs
where sea-going ships usually cannot (sea-going ships have a very deep hull for
supplies and trade etc.).
 Ferries are a form of transport, usually a boat or ship, but also other forms,
carrying (or ferrying) passengers and sometimes their vehicles. Ferries are also

23. 23
used to transport
freight (in lorries
and sometimes
unpowered freight
containers) and
even railroad cars.
Most ferries
operate on regular,
frequent, return
services. A foot-passenger ferry with many stops, such as in Venice, is
sometimes called a waterbus or water taxi. Ferries form a part of the public
transport systems of many waterside cities and islands, allowing direct transit
between points at a capital cost much lower than bridges or tunnels. Many of
the ferries operating in Northern European waters are ro/ro ships. See the
Herald of Free Enterprise and M/S Estonia disasters.
 Cruise ships
are passenger
ships used for
pleasure
voyages, where
the voyage
itself and the
ship's amenities
are considered
an essential part of the experience. Cruising has become a major part of the
tourism industry, with millions of passengers each year as of 2006. The
industry's rapid growth has seen nine or more newly built ships catering to a

24. 24
North American clientele added every year since 2001, as well as others
servicing European clientele. Smaller markets such as the Asia-Pacific region
are generally serviced by older tonnage displaced by new ships introduced into
the high growth areas. On the Baltic sea this market is served by cruise ferries.
 Ocean Liner is a passenger ship designed to transport people from one seaport
to another along regular long-distance maritime routes according to a schedule.
Ocean liners may also carry cargo or mail, and may sometimes be used for
other purposes. Ocean liners are usually strongly built with a high freeboard to
withstand rough seas and adverse conditions encountered in the open ocean,
having large capacities for fuel, food and other consumables on long voyages.
 Cable layer is a deep-
sea vessel designed
and used to lay
underwater cables for
telecommunications,
electricity, and such.
Large superstructure
and one or more
spools that feed off the
transom distinguish it.

25. 25
 A tugboat is a boat
used to manoeuvre,
primarily by
towing or pushing
other vessels (see
shipping) in
harbours, over the
open sea or
through rivers and
canals. They are
also used to tow barges, disabled ships, or other equipment like towboats.
 A dredger
(sometimes also
called a dredge) is
a ship used to
excavate in
shallow seas or
fresh water areas
with the purpose
of gathering up
bottom sediments
and disposing of
them at a different
location.
 A barge is a flat-bottomed boat, built mainly for river and canal transport of
heavy goods. Most barges are not self-propelled and need to be moved by
tugboats towing or towboats pushing them. Barges on canals (towed by draft

26. 26
animals on an adjacent
towpath) contended with
the railway in the early
industrial revolution but
were outcompeted in the
carriage of high value
items due to the higher
speed, falling costs, and
route flexibility of rail
transport.
 A Multi-purpose ship (sometimes called a general cargo ship) is used to
transport a variety of goods from bulk commodities to break bulk and heavy
cargoes. To provide
maximum trading
flexibility they are
usually geared and
modern examples
are fitted for the
carriage of
containers and
grains. Generally
they will have large open holds and twee decks to facilitate the carriage of
different cargoes on the same voyage. The crew will be highly competent in the
securing of break bulk cargoes and the ship will be equipped with various
lashings and other equipment for sea fastening.
 Ships that fall outside these categories include Semi-submersible heavy-lift
ships or OHGC (Open Hatch General Cargo).

27. 27
Major ship size includes:
 Handy max: Traditionally the workhorses of dry bulk, the handy and more
recent handymax types remain popular ships less than 60,000dwt. The
handymax sector operates in a large number of geographically dispersed global
trades, mainly carrying grains and minor bulks including steel products, forest
products and fertilizers. The vessels are well suited for small ports with length
and draft restriction and also lacking transshipment infrastructure. This category
is also used to define small-sized oil tanker.
 Panamax: Represents the largest acceptable size to transit the panama canal,
which can be applied to both freighters and tankers; length are restricted to a
maximum of 275 meters, and widths to slightly more than 32 meters. The
average size of such abig ship is about 65,000 dwt. They mainly carry coal
,grain and lesser extent, minor bulks, including steel product, forest products
and fertilizers.
 Capsize: refer to a rather ill-defined standard which have the common
characteristics of being incapable of using the panama or Suez Canal not
necessarily bcoz of their tonnage, but bcoz of their size. These ships serve
deepwater terminals handling raw materials, such as iron ore and coal.
 Aframax: A tanker of standard size between 75,000 and 11,5000 dwt. The
largest tanker size in the AFRA (Average freight Rate Assessment) tanker rate
system.
 Suezmax: This standard, which represents the limitation of Suez Canal, has
evolved. Before 1067, the Suez Canal could only accommodate tanker ship with
maximum of 80,000dwt. The canal was closed between 1967 and 1975 bcoz of
Israel -Arab conflict. Once it reopened in 1975, the suezmax capacity went to

28. 28
150,000 dwt. An enlargement to enable the canal to accommodate 200,000 dwt
tankers is being considered.
 VLCC: Very Large Crude Carriers, 150,000 to 320,000 dwt in size. They offer
good flexibility for using terminals since many can accommodate their draft.
They are used in ports that have depth limitations, mainly around the
Mediterranean, West Africa and the North Sea. They can be ballasted through
the Suez Canal.
 ULCC: Ultra Large Crude Carriers, 300000 to 550,000 dwt in size. It is used
for carrying crude oil on long routes. The enormous sizes of these vessels
require custom built terminals.
Terms of shipment:
Common trading terms used in shipping goods internationally include:
• Freight on board, or free on board (FOB): The exporter delivers the goods at the
specified location (and on board the vessel). Costs paid by the exporter include
load and lash, including securing cargo not to move in the ships hold, protecting
the cargo from contact with the double bottom to prevent slipping, and protection
against damage from condensation. For example, "FOB Kunming Airport" means
that the exporter delivers the goods to the airport, and pays for the cargo to be
loaded and secured on the plane. The exporter is bound to deliver the goods at his
cost and expense. In this case, the freight and other expenses for outbound traffic
are borne by the importer.
• Cost and freight (C&F, CFR, and CNF): Insurance is payable by the importer and
the exporter pays the ocean shipping/air freight costs to the specified location. For
example, C&F Los Angeles (the exporter pays the ocean shipping/air freight costs
to Los Angeles). Many of the shipping carriers (such as UPS, DHL, and FedEx)

29. 29
offer guarantees on their delivery times. These are known as GSR guarantees or
"guaranteed service refunds"; if the parcels are not delivered on time, the customer
is entitled to a refund.
• Cost, insurance, and freight (CIF): Insurance and freight are all paid by the
exporter to the specified location. For example, at CIF Los Angeles, the exporter
pays the ocean shipping/air freight costs to Los Angeles including the insurance.
• The term "best way" generally implies that the shipper will choose the carrier
who offers the lowest rate (to the shipper) for the shipment. In some cases,
however, other factors, such as better insurance or faster transit time will cause the
shipper to choose an option other than the lowest bidder.
• Agency Fee: Fee payable by a ship-owner or ship operator to a port agent.
• Agent: A person or organization authorized to act for or on behalf of another
person or organization. In the shipping field, an Agent is a corporate body with,
which there is an agreement to perform particular functions on behalf of them at an
agreed payment. An Agent is either a part of a shipping corporation or an
independent body part of a shipping corporation or an independent body.
• Bill of Lading (B/L, plural: Bs/L): A document which evidences a contract of
carriage by sea.
• Break Bulk Cargo: General cargo conventionally stowed as opposed to unitized,
containerized and Roll On-Roll Off cargo.
• Bulk Carrier: Single deck vessel designed to carry homogeneous unpacked dry
cargoes such as grain, iron ore and coal.
• Cargo: Goods transported or to be transported, all goods carried on a ship
covered by a B/L.
• Carrier: The party undertaking transport of goods from one point to another
• Claim: A charge made against a carrier for loss, damage or delay.

30. 30
• Clean Bill of Lading: A Bill of Lading which does not contain any qualification
about the apparent order and A Bill of Lading which does not contain any
qualification about the apparent order and condition of the goods to be transported.
• Consignee: The party such as mentioned in the transport document by whom the
goods, cargo or containers are to be received.
• Consignment: A separate identifiable number of goods (available to be)
transported from one consignor to one consignee via one or more than one modes
of transport and specified in one single transport document.
• Consignor: Shipper
• Container Terminal: Place where loaded and/or empty containers are loaded or
discharged into or from a means of transport.
• Damaged Cargo Report: Written statement concerning established damages to
cargo and/or equipment.
• Dangerous Goods: Goods are to be considered dangerous if the transport of such
goods might cause harm, risk, peril, or other evil to people, environment,
equipment or any property whatsoever.
• Dead freight: Slots paid for but not used.
• Delivery Order: A carrier's delivery order (negotiable document) is used for
splitting a B/L (after surrender) A carrier s delivery order (negotiable document) is
used for splitting a B/L (after surrender) in different parcels and have the same
function as a B/L.
• Export License: Document granting permission to export as detailed within a
specified time.
• FTL: Full Truck Load, an indication for a truck transporting cargo directly from
supplier to receiver.
• Free In and Out (FIO): Transport condition denoting that the freight rate excludes
the costs of loading and discharging and, if appropriate, stowage and lashing.

31. 31
• Freight Invoice: An itemized list of goods shipped and services rendered stating
fees and charges.
• Freight Prepaid: Freight and charges to be paid by the consignor.
• Freight Ton: A unit for freighting cargo according to weight and/or cubic
measurement A unit for freighting cargo according to weight and/or cubic
measurement.
• Full Container Load (FCL): A general reference for identifying container loads of
cargo loaded and/or discharged at merchants' premises.
• Gantry Crane: A crane or hoisting machine mounted on a frame or structure
spanning an intervening space, which often travels on rails.
• Gross Tonnage (GRT): The measure of the overall size of a vessel determined in
accordance with the provisions of the international convention on measurement of
vessels usually expressed in register ton.
• Heavy Lift: Single commodity exceeding the capacity of normal loading
equipment and requiring special equipment and rigging methods for handling.
• House to House Transport: The transport of cargo from the premises of the
consignor to the premises of the consignee The transport of cargo from the
premises of the consignor to the premises of the consignee.
• Insurance Certificate: Proof of an insurance contract
• Intermodal Transport: The movement of goods (containers) in one and the same
loading unit or vehicle which uses successively several modes of transport without
or vehicle which uses successively several modes of transport without handling of
the goods themselves in changing modes.
• Less than Container Load (LCL): For operational purposes a LCL (Less than full
container load) container is considered a container in which multiple consignments
or parts thereof are shipped.

32. 32
• Letter of Indemnity: Written statement in which one party undertakes to
compensate another for the costs and consequences of carrying out a certain act.
The issue of a letter of indemnity is sometimes used for cases when a shipper likes
receiving a clean Bill of Lading while a carrier is not shipper likes receiving a
clean Bill of Lading while a carrier is not allowed to do so. Within P&O Nedlloyd
the issues of letters of indemnity are contrary to the company's instructions.
• Liner in Free Out (LIFO): Transport condition denoting that the freight rate is
inclusive of the sea carriage and the cost of loading, the latter as per the custom of
the port. It excludes the cost of discharging.
• Mate's Receipt: A document signed by the chief officer of a vessel
acknowledging the receipt of a certain consignment on board of that vessel. On this
document, remarks can be made as to the order and condition of the consignment.
• Multimodal Transport: The carriage of goods (containers) by at least two
different modes of transport.
• Negotiable: In terms of documents, 'negotiable' means that e.g. a Bill of Lading is
handed over/transferred in the right manner (viz proper endorsement) to another
person either over/transferred in the right manner (viz. proper endorsement) to
another person either endorsed in blank or endorsed to a person and that person
acquires, by this transfer certain rights vis-? is the goods e.g. is entitled to take
possession of the goods.
• Owner: The legal owner of cargo, equipment or means of transport.
• Particular Average: A fortuitous partial loss to the subject matter insured
proximately caused by an insured peril but which is not a general average loss.
Particular average only relates to damage and/or expenses which are exclusively
borne by the owners of a vessel which has sustained damage as a result of e g
heavy weather or by the owners of the cargo which has been damage as a result of

33. 33
e.g. heavy weather or by the owners of the cargo, which has been damaged in
transit.
• Quotation: Amount stated as the price according to tariff for certain services to be
provided or issued to a customer with specification on conditions for carriage.
• Rate: The price of a transport service.
• Rebate: That part of a transport charge which the carrier agrees to return.
• Roll-on Roll-off (Ro-Ro): System of loading and discharging a vessel whereby
the cargo is driven on System of loading and discharging a vessel whereby the
cargo is driven on and off by means of a ramp.
• Schedule: A timetable including arrival/departure times of ocean- and feeder
vessels and also inland transportation. It refers to named ports in a specific voyage
(journey) within a certain trade indicating the voyage (number's). In general: The
plan of times for starting and/or finishing activities.
• Seaworthiness: Fitness of a vessel to travel in open sea mostly related to a
particular voyage with a particular cargo.
• Shipment: A separately identifiable collection of goods to be carried.
• Shipper: The merchant (person) by whom, in whose name or on whose behalf a
contract of carriage of goods has been concluded with a carrier or any party by
whom, in whose name or on whose behalf the goods are actually delivered to the
carrier in relation to the contract of carriage.
• Tariff: The schedule of rates, charges and related transport conditions.
• Time Sheet: Statement, drawn-up by the ship's agent at the loading and
discharging ports, which details the time worked in loading and discharging the
cargo together with the amount of lay time used.
• Voyage: A journey by sea from one port or country to another one or, in case of a
round trip, to the same port.

34. 34
SEA TRANSPORT
Definition: “Transport goods and commodities by ship Goods is measured in tons
but transport is Transport goods and commodities by ship. Goods is measured in
tons but transport is measured by tons / miles (the weight carried multiplied by the
length of the voyage). The value of a commodity is not its price or its cost but its
utility , can be invariable increased by transport for example, coal which is
underground has no value , but ounce transported to a person freezing in winter it
can have considerable value
Characteristic Of Sea Transport:
1. Sea transport is slow – ships carrying raw material (tramp) move at around 13-
14 knots- container ships speed 18-25 knots.
2. Sea transport is cheap because e it can take advantage of economies of scale,
large ships can reduce the cost per unit carried.
3. Sea transport connect land which separated by water.
Pattern of seaborne trade:
World seaborne trade increased strongly in 2004, reaching 6.76 billion tons of
loaded goods. The annual growth rate, calculated with the provisional data
available for year 2004, reached 4.3 per cent. Total maritime activities measured in
ton-miles increased to 27,635 billion ton-miles, compared with25, 844 billion ton-
miles in 2003. The world merchant fleet expanded to 895.8 million deadweight
tons (dwt) at the beginning of 2005, a 4.5 per cent increase.
Development of International sea born trade, selected years.

35. 35
YEAR Tanker Cargo Dry Cargo Bulk Cargo
Total
(All Cargoes)
1990 1442 1124 448 2566
1995 1871 1833 796 3704
2000 1755 2253 968 4008
2006 2163 9821 1288 5983
2008 2674 4724 1828 7416
1unit - Millions Of Tons
Shipping markets:
World seaborne trade in cargo (things to be moved) splits into three markets.
1. The Liner Market: This deals with general cargo which is usually relatively
expensive compared with “bulks” and the liner ships run on scheduled routes with
fixed tariff and condition.
2. The Dry Cargo Tramp Market: Tramps, in shipping terms relates to the way the
ship tramps from place to place where the market drawn it .Tramps carry mainly
ship load of bulk materials , the main commodities or Grain, Coal etc… . The
freight rates and conditions are negotiable as per Charter parties.
3. The Tanker Market: Tankers are specialized trumps being designed to carry
liquids in bulk. The oil trade routes are limited. This market contains 2 main
groups, Large tankers carry the crude oil and smaller carry the refined products.
THE LINERS
It started through the last century when steamships appeared and started
offering started scheduled services between ports. They then tended to offer a
faster and more highly more highly quality service than the selling ships and
despite their higher freight rate tended to their rate tended to attract shippers

36. 36
with high value cargo who were prepared to pay extra for speed and predictable
delivery dates. In the sixtieth the conventional general cargo ship was increasingly
replaced by the container ship. Increasingly replaced container. Then
containerization has had effect and it will continue to have on shipping industry
.Container ships have a larger, faster, and a quicker turn around than the ships they
replace. The containers are introduced to reduce the cargo handling cost introduced
cargo cost which has increased for more than any shipping cost and to increase
productivity comparing port time for general cargo ships and container ships.
LINER FREIGHT RATES
Liner freight rates are relate to a tariff of somewhat or some sort .They are, far
less volatile that those in tramp shipping. In many cases that any increases in the
tariff may only take place after period of notice. To overcome short -run variation
in cost such as changes in bunker prices or in rate of as changes exchanges, liner
operators generally resort surcharges typical of which are BAF AND CAF.
LINER CONEFERENCES
Conferences are organization of shipping lines operating on particular route.
For example, the Transpacific West Bound Freight Agreement operates on the
route from the US to Far east route and the Indian sub-content. The conferences are
formal agreement between shipping lines on route setting prices and sometimes
pooling profits or revenues, managing capacity, a locating routes and offering
loyalty discounts.
 Conferences can be either open or closed to accept new members.
 Conferences issue a freight tariff.
 Conferences may also allocate output among their members by either cargo
quotas or Sailing quotas.

37. 37
 Conferences employ policing agencies to check on adherence to the tariff
Conference Practice.
 The conferences set prices, often based on loyalty arrangement they use two
kind of loyalty contracts; The contract rates and differ rebate .The shipper sign
in agreement to deal in exclusively with the conference and in turn receive
discounts on the freight rate .
 The conferences response to an entrant by lowering the rate on one of its
vessels to compete with the entrant until entrant lost money and left the market.
In the last decade, the conferences have lost their importance and decline in the
number of the members.
CHARTERING
Charterparty A charterparty is a contract of lease of a ship in whole
or in part for a long or short period of time or for a particular voyage. It has been
said that its origin lies in the mediaeval Latin "carta partita" or "charta partita" or
"charta divisa", where an agreement was torn into two pieces and one half was
given to each party. Proof of the whole contract was no doubt difficult if one party
was obstinate - modern methods of photocopying the contract for each party seem
preferable Affreightment is essentially placing a ship at the disposal of another
party, while transport is essentially the carrier taking charge of goods. Hire is the
consideration paid under demise and time charterparties; freight is the
consideration paid under voyage charterparties and bills of lading.
a) Charterparty by demise A Charterparty by demise is a contract by which the
ship- owner places a ship in the hands of the chartered who assumes possession
and control. The consideration paid by the chartered is hire which is payable at
specified intervals during the term of the charter. Under a demise Charterparty, the

38. 38
ship-owner appoints the master and the crew, although they are paid and controlled
by the demise chartered.
 A bareboat charter is a demise charter whereby the bareboat chartered names,
pays and controls the master and the crew.
 Among the most common forms of demise charter are the "Baltic and
International Maritime Council Standard Bareboat Charter" (Code Name:
"Barecon '89"); and the "BIMCO Standard Charter" (Code Name: "Barecon
2001") forms of BIMCO.
b) Consecutive voyage charter A consecutive voyage charter party is a voyage
Charterparty for a determined number of consecutive voyages.
c) Slot charter - A Charterparty whereby the shipper leases one or more "slots,"
each capable of holding a 20-foot container, aboard a container ship.
d) Space charter it is a contract whereby a capacity of carriage is put at the
disposal of the shipper for the carriage of his goods during a period of time under
particular terms and conditions. Whether it is a contract of
Hire or a contract of carriage or even a contract of agency like a freight forwarders
contract, depends on its terms.
e) Time Charterparty A time Charterparty is a contract whereby the ship-owner
places a fully equipped and manned ship at the disposal of the chartered for a
period of time for a consideration called "hire" payable at specified intervals during
the term of the charter. Among the most common forms of time Charterparty are
the New York Produce Exchange (NYPE) and the Exchange (NYPE) and Baltime.
Main terms
 Ships name and other details to identify her
 Many other detail of the ship including total deadweight grain and bale cubic
,draft, number of decks hold and hatches, number and lifting capacity of
derricks ,crane etc.

39. 39
 Rate of hire expressed in days or months.
 The period in months or years.
 Delivery place.
 Re-delivery place.
 Delivery time ex: not before certain date.
f) Voyage Charterparty: A voyage Charterparty is a contract whereby the ship-
owner places all or part of the carrying capacity of a ship at the disposal of the
charter (the voyage chartered) for the transport of goods agreed upon, on one or
more voyages, for a consideration called "freight" based on the quantity of cargo
carried, and usually payable at the end of the voyage. Among the most commonly
used form is the "Baltic and International Maritime Council Uniform General
Charter form of BIMCO. “
Main Contract term:
 Ships name and other details to identify her
 name and details
 The cargo and the quantity the ship carry
 The loading and discharge ports
 Rate of freight
 "Lay days and canceling" ex: loading not to commence not before a certain date
with charterers having the option to cancel the charter if the ship is later than
the second date.
 The rates of loading and discharging
 Demurrage and dispatch.
 Charter party forum to be used
 Total commission in involve

40. 40
SHIPPING DOCUMENTATION
Documentation used in international trade performs a number of separate functions
and these can be divided into and can into the following categories:
instruction; financial; identification; authorization.. In this section we will be
dealing with those documents which are used in international trading activity.
BILL OF LADING
FUNCTION
 It is evidence that a contract of carriage exists between shipper (exporter) and
ship owner.
 It is a receipt for goods, showing prima facie that they have been received into
the charge of a carrier.
 It is a document of title which allows title to the goods to be transferred by
endorsement and delivery of the bill of lading.
Main details to be incorporated in the bill of lading
 Name and address of the shipper
 The name of the vessel name of the
 description of cargo, including identifying marks, numbers and types of
packages, types contents, gross weights and volume;
 port of shipment
 port of discharge
 details of freight, including whether it is to be "prepaid" (at port of dispatch) or
"payable at destination" (freight collect);
 Consignor's name and address which may be that of the buyer. Alternatively
bills of lading may be made out to show "to order" in the consignee box or "to
the order of..."

41. 41
 Notify party's name and address - often an agent acting on behalf of the
consignee at the port of destination. However, the consignor's details may be
entered in the "Notify party" consignor details be entered box where "order"
bills of lading are applicable
 Terms of sale
 The date on which the goods are received for shipment or date on which goods
are shipment or shipped on board the named vessel
 Number of original bills issued
 Signature of shipping line or its appointed agent.
Principal notations on bills of lading:
Clean bills and Claused bills:
A "clean" bill of lading is one in which no notation is shown on the
document relating to cargo having been received by the line or shipped in any
other than good condition and correct n any than good and quantity. Thus,
standard printed bills of lading usually bear the wording "Shipped (or received for
shipment) in apparent good order and condition". If no clause to the contrary is
entered, the bills are said to be clean. In the case where the cargo is noted to be
wet, damaged or otherwise in doubtful condition or quantity, bills of lading will be
issued "claused" (or "dirty"), showing the defect in the cargo. It follows that if
goods are the cargo. It allows are shipped under a claused bill, consignees
may reject them or, alternatively, banks may not accept such bills of lading for
payment purposes.
Received bills and shipped bills:
As has already been said above, a bill of lading constitutes a receipt for
goods receipt goods delivered into the charge of a shipping line. Thus the
standard wording on a printed bill of standard printed lading may state

42. 42
"Received for shipment..." and will be signed and dated by the line or its will or
agents. Although this shows that the goods have moved out of the exporter's charge
into that of the carrier, it does not show that actual shipment has taken place.
Through bills of lading:
The "through" bill of lading concept allows door-to-door shipments to be
covered by a bill of lading. This became necessary following the development of
containerization. Thus, this type of bill may cover ocean shipment, plus inland
transport by other modes.
Combined transport bills of lading:
Similar to a through bill of lading, the combined transport bill of lading
allows for the contract of bill the carriage to be covered by a single document and a
clearly defined single set of conditions of carriage to include the use of road and/or
rail shipment at either end of the sea leg. This document will, when issued, extend
the carrier's liability as set out in the carrier as set in the combined transport bill of
lading to the other transport modes. Freight forwarders operating as non-vessel
owning carriers (NVOCS) will most issue this type of document.
Group age and house bills of lading:
The concept of groupage - combining a number of individual consignments
into a complete container load for shipment - has been developed over many years
by freight forwarders operating services between two inland points in different
countries working in conjunction with an overseas office or partner. An ocean bill
of lading for a container load of group age is issued by the shipping lines showing
the sending forwarder as the shipper and the receiving forwarder as the consignee.
The forwarder thereafter issues his own house bills to individual exporters. These
house bills become the controlling document for the release of the cargo at
destination and enable the exporter, if required, to negotiate these with his
customer in return for payment of the goods.

43. 43
It is important to note that a "house" bill of lading does not have the same
status as an ocean bill issued by a shipping line as it is not a document of title, in
the same sense of the word, as an ocean bill. However, it is capable of negotiation,
and is often acceptable to banks for letter of credit purposes when this has been
stipulated in the credit at the time it is opened.
Negotiation of bills of lading:
The bill of lading is a negotiable document which allows title to goods to be
transferred by endorsement and delivery. This facility gives one or other parties to
the transaction control over title to the goods and for this reason letters of credit
often stipulate certain types of bill of lading in order for this control to be
exercised. Three basic types of endorsement are possible:
1. Endorsement by consignee:
In this case the bill of lading is completed as below:
 Shipper box in bill of lading: Actual shipper (exporter)
 Consignee box in bill of lading: Actual consignee (buyer)
 Notify box in bill of lading: Consignee's agent at port of arrival.
 Completion of the bill of lading in this manner allows either the bill allows
consignee to present himself in person to the line to take delivery of the goods
or to endorse the bill of lading on the reverse side to allow his agent to do so
and to deliver the goods to him. Thus the consignee exercises control over who
takes the goods in charge at the destination port.
2. "To order" bills of lading
 Bills of lading made out "to order" are completed as below:
 Shipper box in bill of lading: Actual shipper (exporter)

44. 44
 Consignee box in bill of lading: "To order"
 Notify box in bill of lading: Actual consignee (buyer)
 In this instance, the shipper must stamp and sign the bill of shipper must stamp
sign the lading in order for title to the goods to be transferred to the
consignee. Thus the bill of lading is useless to the consignee without this
endorsement. This is a useful safeguard against bills being accidentally
transmitted to buyers directly. Clearly, should this happen the buyer would not
be able to take delivery of the goods and the bill of lading would have to be
returned to the shipper for endorsement and presentation to the bank. Bills
shipper or and bank Bills of lading completed in this manner are also said to be
"To order blank endorsed".
3. To order of (bank)
In this case, the bill of lading is completed as follows:
 Shipper box in bill of lading Actual shipper (exporter)
 Consignee box in bill of lading To the order of (bank)
 Notify box in bill of lading True consignee (buyer)
 The bank is the party which carries out the endorsement in this instance and
which, therefore, exercises control over the goods. Thus, if the bank wishes to
ensure that the buyer has actually paid for the goods before he takes delivery,
the bank may goods before he takes the endorse the bill of lading when
payment is made.
Sea waybills:
Sea waybills offer a non-negotiable alternative to the bill of lading.
Generally speaking, they embody the Hague-Visby Rules. With a few exceptions
they are not negotiable and are, therefore, not usable as a means of transferring title
to goods. A freight forwarder might use them to control groupage cargo. The sea

45. 45
waybill can thus be sent forward with the goods allowing the consignee to take
immediate delivery. The legal protection offered to the shipper under a sea waybill
is thought by some to be inferior to that offered under a bill of lading. However,
being a relative new innovation, there has been insufficient time to test them in
law.
Letter of guarantee:
Letter of guarantee: A written undertaking, or letter of indemnity, usually
provided by a bank, promising to hold the carrier harmless, up to a certain sum, for
claims that may arise from the delivery of goods to a particular person who is
unable to surrender the original bills of lading in return for the goods.
Letter of indemnity:
Letter of indemnity: A written undertaking by a shipper to indemnify a carrier
for any liability which any which the carrier may incur for having issued a clean
bill of lading when, in fact, the goods received were not as stated on the bill of
lading .Such a letter is usually a central document in a fraud, whereby the shipper
and carrier knowingly misrepresent to third parties the actual order and condition
of the goods at the and of the at the time of shipment or the bad order of the
packing, or whereby they issue duplicate bills of lading to replace lost or stolen
originals. Letters of indemnity or stolen originals should not be condoned by courts
and are generally held ineffective as against third parties.
MARITIME GEOGRAPHY
 Definition: Studying seas and costal area which you have to find your way
round to pickup and deliver your cargoes.
The distances in shipping are always given in nautical miles which equal to
1852 meters. Latitude and Longitude: Latitude Is used for measuring how far
North or South and Longitude how far east and west. Time is also Is function of

46. 46
Longitude this for every 15° you move east you advance your watch one hour and
vice versa for westerly movement
 Weather
 Ports
 Water depth and tides
 Time zone
LOGISTICAL MOVEMENT BY SEA THROUGHOUT THE WORLD
Oceanic masses and rivers are the two major components of maritime circulation.
Oceanic masses account for 71% of the terrestrial surface. The four major oceans
relevant to maritime circulation are: the Pacific (165 millions square km), the
Atlantic (82 million square km), Indian (73 million square km) and the
Mediterranean (2.5 million square (2 km).

47. 47
3PL (Third Party Logistics)-
“Third-party Logistics is simply the use of an outside company to perform
all or part of the firm’s materials management and productdistribution function.”
-- Simchi-Levi (2000)
“A relationship between a shipper and third party which, compared with the basic
services, has more customized offerings, encompasses a broad number of service
functions and is characterized by a long-term, more mutually beneficial
relationship”
-- Murphy & Poist
(1998)
Characteristicsof3PL:
o Perform outsourced logistics activities
o Process management / Multiple activities
o More customized services

48. 48
o Mutually beneficial and risk-sharing relationship
o Long-term commitments (1~ 3 years).
Why is it needed?
Advantages:
o Costreduction.
o Focus on corecompetency.
o Improved efficiency, service and flexibility.
o Industry-specific application.
– “build-to-order” systems and e-merchants
Disadvantages:
o Loss of control.
o Impact on in-house workforce.
 How is a 3PL Differentiated from a TransportationProvider?
 Transportation provider gets productfrom point A to point B
 Could be considered a 3PL
 Just one function of logistics
 3PL provider assists in multiple functions.
SuccessfulImplementation of 3PL
 Why you want to select the right provider the first time
 Only about 65% of companies believe their provider is doing a
“good”job.
 55% of logistics outsourcing contracts end in 3-5 years

49. 49
 The sourcehad a list of 14 key tips for success,butwe are going to
focus on the 5 most important issues.
1) Have an outsourcing strategy.
 Know what your outsourcing strategy is. It needs to be well thought out and
measured against in house solutions and capabilities.
 SWOT analysis. As a company you should understand the strengths,
weaknesses, opportunities and threats of outsourcing logistics, rather than
keeping them in house.
2) Do your homework.
 Do a comprehensive study: Clearly document advantages, challenges, costs
and benefits.
 Document expectations: Set down expectations in clear terms and include
current costs.
 Make a site visit to the 3PL, and talk with its existing customer.
3) Measure and review performance
 Have a efficient and accurate measurementsystem:Qualitative measures
that focus on effectiveness and quantitative measures that focus on efficient
utilization.
 Have an efficient costing system: This will help you to understand the costs
involved in outsourcing.
 “Are we making money doing this?”
4) Create an Implementation Strategy

50. 50
 Create a projectplan road map: Be clear who does what, create a project
management team with members from both organizations and review
progress vs. planned milestones.
5) Nurture the Relationship: Both Parties must nurture the relationship to make
outsourcing successful. Create mutual trust, respect and a sense of integrity.
A third-party logistics provider (3PL) Provides outsourced or'third party'
logistics services to companies for part or sometimes all of their supply chain
management functions. Well known 3PLs include DHL, Wincanton, Norbert-
Dentressangle, CEVA & NYK Logistics
A fourth-party logistics provider (4PL) is an independent, singularly
accountable, non-asset based integrator who will assemble the resources,
capabilities and technology of its own organization and other organizations,
including 3PLs, to design, build and run comprehensive supply chain solutions for
clients.

51. 51
4PL (4th
party logistics)
 Manage and direct the activities of multiple 3PLs, serving as an integrator
 Refinement on the idea of 3PLs
 4PLs are not asset based like 3PLs
 Assembles and manages the resources, capabilities, and technology of its
own organization and other organizations to design, build and run
comprehensive supply chain solutions.
Transways Express 4PL
 One stop transport and logistics supplier.
 Work with suppliers and customers.

52. 52
PORTS IN INDIA
India has a long coastline, spanning 7600 kilometers, forming one of the
biggest peninsulas in the world. It is serviced by 13 major ports (12 government
and 1 corporate) and 187 notified minor and intermediate ports. The latest addition
to major ports is Port Blair on June 2010, the 13th port in the country.
Major ports handled over 74% of all cargo traffic in 2007. However, the
words "major", "intermediate" and "minor", do not have a strict association with
the traffic volumes served by these ports. As an example, Mundra Port, a newly
developed minor port in the state of Gujarat registered cargo traffic of around 28.8
million tonnes per annum during the financial year of 2008, which is higher than
that of many major ports.
The classification of Indian ports into major, minor and intermediate has
an administrative significance. Indian government has a federal structure, and
according to its constitution, maritime transport falls under the "concurrent list", to
be administered by both the Central and the State governments. While the Central
Shipping Ministry administer the major ports, the minor and intermediate ports are
administered by the relevant departments or ministries in the nine coastal states—
West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa,
Maharashtra and Gujarat. Several of these 187 minor and intermediate ports are
merely "notified"; little or no cargo handling actually takes place. These ports have
been identified by the respective governments to be developed, in a phased
manner, a good proportion of them involving public–private partnership.
Cargo handling is projected to grow at 7.7% until 2013-14. Some 60% of
India’s container traffic is handled by the Mumbai Port and Jawaharlal Nehru Port
Trust in Navi Mumbai.

53. 53
MAJOR PORTS IN INDIA
There are also 7 shipyards under the control of the central government
of India, 2 shipyards controlled by state governments, and 19 privately owned
shipyards. The major ports handled 423.4 million tons of cargo for the financial
year 2005-2006, with Vishakhapatnam, Kochi, Kolkata Port, Chennai Port and
Kandla carrying the greatest tonnage. Major ports can collectively handle 400+
million tons of cargo annually, and port operations have improved since the mid-
1990s. All major ports, except one (Ennore Port), are government administered,
but private-sector participation in ports has increased. The brief information of
some major ports In India is as follows:
1. CHENNAI PORT
Chennai Port formerly known as Madras Port, is the second largest
port of India, behind the Mumbai Port, and the largest port in the Bay of Bengal.
Being the third oldest port among the 12 major ports of India, it is over 125 years
old, although maritime trade started way back in 1639 on the sea shore. It is an
artificial and all-weather port with wet docks. It was a major travel port before
becoming a major container port. It is a substantial reason for the economic growth
of Tamil Nadu, especially for the manufacturing boom in South India, and has
contributed in no small measure to the development of the city. It is due of the
existence of the port that the city of Chennai became known as the Gateway of
South India. The port with 3 docks, 24 berths and draft ranging from 12 to 16.5 m
(39 to 54.1 ft) has become a hub port for containers, cars and project cargo in the
east coast of India.
Location and geography
Chennai Port lies on a flat coastal plain known as the Eastern Coastal
Plains on the east coast of the Indian peninsula known as the Coromandel Coast in
the Bay of Bengal. The port is situated on the thermal equator and is also coastal,

54. 54
which prevents extreme variation in seasonal temperature. The climate is tropical,
specifically tropical wet and dry, and for most of the year, the weather is hot and
humid, with temperatures ranging from a maximum of 42°C in May to a minimum
of 18°C in January. The annual rainfall in the region is about 1250 mm, and the
spring tides are up to 1.2 m (3 ft 11 in).
Chennai Port
Location
Country India
Location Chennai (Madras)
Details
Opened 1881
Operated by Chennai Port Trust
Owned by Chennai Port Trust, Ministry of Shipping, Government of India
Type of harbor Coastal breakwater, artificial, large seaport
Size of harbor 169.97 ha (420.0 acres)
Land area 237.54 ha (587.0 acres)
Size 407.51 ha (1,007.0 acres)
Available berths 26
Employees 8,000 (2004)
Chairman Atulya Misra
Main trades
Automobiles, motorcycles and general industrial cargo including
iron ore, granite, coal, fertilizers, petroleum products, and containers

55. 55
Major exports: Iron ore, leather, cotton textiles
Major imports: Wheat, raw cotton, machinery.
World Port
Index Number
49450
Website http://www.chennaiport.gov.in/
Port layout and infrastructure
Chennai port was the second smallest in the country measured by surface area,
encompassing only 274 hectares. Chennai port
area is divided into north, central and south
zones and fishing harbors Dr. Ambedkar Dock,
Satabt Jawahar Dock, and Bharathi Dock along
with the container terminal, and draft ranging
from 12–16.5 m (39–54.1 ft). Jawahar Dock has
6 berths, Bharathi Dock has 3 berths (for oil and
iron ore), the container terminal has 3 berths and
the moorings has 1 berth. The berths can handle
containers as well as liquid and dry bulk and
breakbulk cargoes.
Type Nos.
Area
(sq.m)
Covered
Warehouses 12 65,686
Transit sheds 8 36,000
Covered area
for FCI
6 43,450
Container
freight stations
2 12,600
Region Waterspread Land area
No. of
berths
Inner harbour 218 acres 413 acres 16
Outer harbour 200 acres 100 acres 7
Total 418 acres 513 acres 23

56. 56
Terminals
Chennai Container Terminal: Chennai Container Terminal (CCT) is the first
container terminal in Chennai port built in 1983. The container terminal was
privatized in 2001 and is operated by DP World since 30 November 2001 with a
capacity of 1.2 million TEUs. CCT is managed under a 30 year build-operate-
transfer agreement set up with the Chennai Port Trust of the Government of India.
The terminal is capable of handling fifth generation vessels up to 6,400 TEU and
has direct services to China, West Africa, Europe and the United States. Chennai
International Terminal. Chennai International Terminal Pvt Ltd (CITPL) is the
second container terminal that started operations from June 22, 2009. The build-
operate-transfer facility, built at a cost of about US$110 million, is a joint venture
between PSA International and Chennai-based Sical Logistics Ltd.
Ro-Ro car terminal
Dubbed the Detroit of Asia, Chennai is base to several international car makers,
namely, Ford Motor Co., Hyundai Motor Co., Nissan Motor Co., Renault SA,
Daimler AG and BMW AG. Car export (mainly Hyundai) increased by 80.25 per
cent to touch 2, 48,697 during 2008-09 as against 1,37,971 in the previous year.
The port handled 65 car carriers compared with 40 in the previous year. In 2009,
the port shipped nearly 274,000 cars, 10 per cent more than the previous year. The
port is now the number one ro-ro car terminal in the country. After Hyundai, the
ports have started attracting global manufacturers like Mahindra, Toyota, and Ford.
Ford has decided to move exports to Chennai Port by 2010.
Hyundai Motor India is coming up with a first-of-its-kind dedicated
automobile terminal at the Chennai port. The Chennai port facility is expected to
be on the lines of its Ulsan Port, from where it exports half of Korea's 1,500,000
vehicles annually. The export terminal at the Chennai port would cater to its total

57. 57
Export target of 300,000
cars, which would be 50 per
cent of its total production
by 2009-10.
Cruise terminal
The Chennai Port Trust has
already in place a cruise
terminal. On an average,
seven to eight cruise vessels
dock in the port each year.
The country's first cruise
ship, AMET Majesty, is
registered in Chennai and is
set to start from Chennai on
8 June 2011.
In 2007, a fully
automated, round-the-clock
helpline for providing
information on the ships
berthed and waiting, the
scale of rates and facilities
available at the port, the first
of its kind in the country,
was established. In the same
year, the Indian government agreed to lift restrictions on concessionary Sri Lankan
tea and apparel exports at the port.
Cargo-Handling Equipments
Total
Units
Locos (diesel) Chittaranjan 8
BHEL loco 10
Diesel/electric loco 2
Mobile cranes 12
Fork lift trucks 55
Floating crane 1
Electrical forklift trucks 24
Pay loaders 7
Shore electric cranes 25
Transfer cranes 10
Tractor head 34
Container quay cranes (35.5T/40T
capacity)
4
Top lift trucks (25T and 35T capacity) 5
Trailers 32
Crawler-mounted cranes 3
Empty container handler 1
Reach stackers 3
10T/3T FLT 7

58. 58
On 11 May 2011, the Madras High Court directed the Shipping Secretary that only
clean cargo such as containers and cars be allotted to the port for handling from 1
October 2011. The port is one of the six ports in India through which drugs are
permitted to be imported, which is handled by the Central Drugs Standard Control
Organization (CDSCO), the other ports being Kolkata, Mumbai, Nhava Sheva,
Kochi and Kandla ports.
As of 2011, cargo movement to the port is increasing by 21 per cent.
Single Operator Container Terminal
On 16 February 2005, Dubai Ports World announced that it has
formally signed an agreement with the Copt to construct, develop and operate an
International Container Transshipment Terminal (ICTT) – An India Gateway
Terminal – at Vallarpadam.
Approval for the agreement was given by the Cabinet Committee of
Economic Affairs of the Government of India, Ministry of Finance and meanwhile,
the DP World will manage and subsequently transfer its operations at the Rajiv
Gandhi Container Terminal in Cochin Port to the new terminal upon its
completion. Vallarpadam Terminal is the largest single operator container terminal
in India and the first in the country to operate in a special economic zone. The
terminal makes Kochi a key centre in the shipping world reducing India’s
dependence on foreign ports to handle transshipment.
• In the first phase there will be 600 m Quay length and a draft of more than 15 m,
when the terminal may handle 1 million TEU containers annually by the end of
2012.
• In the second phase the capacity will be enhanced to 3 million TEU's by the end
of 2014.
• In the third phase the terminal may handle even up to 5.5 million TEU's.
The total cost of the project is estimated at 3200 crore.

59. 59
2. Visakhapatnam Port.
Visakhapatnam is a major sea port on the south east coast of India.
According to the history, the city was named after the god of Valor, Visakha.
Visakhapatnam port Situated on the east coast of India, Visakhapatnam serves as
the gateway for waterways for the state of Andhra Pradesh. Visakhapatnam has
one of the country's largest ports and its oldest shipyard on the eastern coast of
India. It is a land-locked harbour as it is connected to the sea by a channel cut
through solid rock and sand. The shipbuilding yard situated at Visakhapatnam is
the largest in India. Situated on Chennai - Kolkota corridor, the city is also a hub of
on-ground traffic. The Gangavaram Sea Port is India's deepest sea port. In
December 2010, Coal India agreed a deal that would allow an additional berth to
be built at the port.
Gangavaram Port, located in Andhra Pradesh, is India's deepest port.
Inaugurated in July 2009, it has a depth of 21m. It is managed by Gangavaram Port
Ltd., a special-purpose company floated by Mr. DVS Raju, who serves as its
Chairman and Managing Director. The company is owned by the DVS Raju Group
(59%), global Private Equity firm Warburg Pincus (30%) and the Andhra Pradesh
Government (11%).
Country India
Location Andhra Pradesh
Details
Opened July 2009
Owned by Gangavaram Port Ltd.
Size 2,800 acres (11 km2)
Statistics
Website www.Gangavaram.com

60. 60
History of Gangavaram Port
Construction of the port began in December 2005, and commercial operations
commenced in August 2008. The port was formally inaugurated in July 2009, by
the Andhra Pradesh Chief Minister Y S Rajasekhara Reddy. Fishermen in the
Gangavaram and Dibbapalem villages, who were directly affected by the
construction of the port, demanded construction of an alternative jetty and a relief
and rehabilitation package. The DVS Raju group invested Rs. 1,850 crore in the
development of the port. Gangavaram Port Ltd. has taken a loan of Rs. 1,170 crore
from a consortium of 13 banks, including the State Bank of India, to fund the
Phase I development.
Comparisons with the Vizag port
The first client of the Gangavaram Port Ltd. is the Rashtriya Ispat Nigam Ltd.,
which runs the Vizag Steel Plant, and earlier used the Vizag port. The Gangavaram
Port Ltd. plans to build conveyors for taking imported raw materials directly to the
Vizag Steel plant, in order to reduce the railway transportation costs.
The Union Government of India, which owns the Vizag port, had
proposed a joint venture between the Vizag port and the private operator of the
Gangavaram port to make sure that the Vizag port's business remains unaffected.
However, this proposal was rejected by the then Andhra Pradesh Chief Minister,
N. Chandrababu Naidu.
DVS Raju, while talking to reporters during the port's inauguration
ceremony, insisted that it would be "complementary in nature" to the Vizag port,
and not a competitor.
The Gangavaram port is capable of handling Super Cape size vessels of
up to 200,000 DWT. The State Government plans to construct a Rs. 21-crore four-
lane flyover to the Gangavaram port.

61. 61
3. Ennore Port.
Ennore Port
Location
Country India
Location Ennore, Chennai
Details
Opened 2001
Operated by Ennore Port Limited
Owned by Ennore Port Limited
Type of harbor Seaport (Artificial)
Available berths 4
Employees 86
Chairman cum
Managing Director
S. Velumani
Capacity 16.00 million tonnes (2008-09)
Main trades
Thermal coal, iron ore, LNG, POL, chemical and other liquids,
crude and other bulk and rock mineral products
Statistics
Annual cargo
tonnage
11.01 million (2010-11)
Annual revenue 1666.5 million (2010-11)
Net income 706.4 million (2010-11)
Vessels handled 294 (2010-11)
Website http://www.ennoreport.gov.in/
Ennore Port, located on the Coromandel Coast about 24 km north of
Chennai Port, Chennai, it is the 12th major port of India, and the first port in India
which is a public company. The Ennore Port is the only corporatised major port
and is registered as a company. The Centre holds a stake of about 68 per cent in the

62. 62
Ennore Port and the remaining 32 per cent is held by the Chennai Port Trust. The
port has been able to attract an investment of 26,000 million by private
entrepreneurs on various terminals and harbour craft. Ennore Port, designed as
Asia’s energy port, has only 86 employees. Hailed as a landmark port, it is the first
corporatized port in India. Envisaged being a satellite port to decongest and
improve the environmental quality at the bustling Chennai Port, Ennore Port is
evolving itself into a full-fledged port with the capacity to handle a wide range of
products. With a permissible draught of 13.5 m, the port handled a total volume of
11.01 million tonnes in 2010-11, up by 2.86 per cent from the previous year.
History
Ennore Port was originally conceived as a satellite port to the Chennai Port,
primarily to handle thermal coal to meet the requirement of Tamil Nadu Electricity
Board (TNEB) and was endowed with large chunks of land (about 2,000 acres).
The scope was expanded taking into account subsequent developments such as the
plan of Government of Tamil Nadu to set up a 1,880 mW LNG power project in
association with a private consortium, a large petrochemical park and a naphtha
cracker plant. Ennore Port was commissioned by the then Prime Minister of India
on 1 February 2001. The port was set up under the Companies Act, keeping it
outside the scope of the Tariff Authority for Major Ports, the tariff regulator for 11
of the 12 ports owned by the Indian government. The port was declared as a major
port under the Indian Ports Act, 1908 in March 1999 and incorporated as the
Ennore Port Limited under the Companies Act, 1956 in October 1999. Commercial
operations commenced with Handymax geared vessels for unloading of thermal
coal on 22 June 2001. With the deployment of self-unloading and gearless vessels
of 65,000/77,000 DWT, full-fledged operations were started in December 2002.

63. 63
Operations
Commissioned in 2001 and operating on a landlord port concept, it is
outsourcing all services required for operation and maintenance, and new terminals
are being developed with the participation of the private sector. During the year of
2010-11, it handled a total cargo of 11.01 million tons. The port has effectively
taken over all the ore movement from the Chennai Port. By 2016, the port is
expected to have the capacity to handle over 80 million tons of cargo and its coal-
handling capacity is expected to be about 43 million tons. The port is equipped to
handle 16 million tonnes of coal per year from its two dedicated coal berths
manned by TNEB, while its third berth promoted by Chettinad International Coal
Terminal, is a common user facility that can handle 8 million tonnes per annum.
Cargo handled by Ennore Port (in million tonnes)
Commodity 2007-08 2008-09
Thermal coal 9.05 9.71
Iron ore 2.19 1.11
Petroleum, oil and lubricants (POL)
(including STS)
0.32 0.68
Total 11.56 11.50
According to the Maritime Agenda 2010-20, the port traffic is projected to
increase to 67.44 million tonnes in 2016-17 and 71.54 million tonnes in 2019-
20.Against this projected traffic growth, the port's capacity is expected to increase
from the existing 16 million tonnes (as on March 31, 2010) to 73 million tonnes in
2016-17. The target set for the port for 2010-11 is 13.20 million tonnes against a
target of 12.45 million tonnes during the previous fiscal. During 2010-11, the port
handled a total of 294 vessels, including 184 dry bulk, 87 liquid bulk, 22 break

64. 64
bulk and 1 container vessels against 273 vessels in 2009-10, registering a 7.69%
increase.
Car exports took place through the port for the first time in 2010-11. A total
of 54,264 cars were exported through the port by Renault Nissan Automotive India
Pvt. Ltd.
Terminals:
The Chettinad International Coal Terminal (CICTL), the private terminal at
the port capable of handling Panamax ships, commenced operations in January
2011 and is targeting to handle nearly 5 million tonnes of coal/coke by current
financial year ending March 31, 2012. The terminal was completed with
equipments and conveyor systems, yard and evacuations systems with capacity to
handle 8 million tonnes of coal/coke annually at project outlay of about 4,000
million.
The Ennore Container Terminal (ECT), also known as the Bay of Bengal Gateway
Terminal, will have an eventual planned annual capacity of 2.4 million TEUs. The
construction is expected to begin by end of 2011 at a cost of £207 million,
allowing the first ships to be handled in 2013. The terminal for 6,000-to-
8,000 TEU vessels will have a quay length of 1,000 m with 15 m water depth at the
berths and will be able to handle three container vessels of up to 8,000 TEUs
simultaneously.
Development works:
The Planning Commission has approved a rail connectivity for Ennore Port to
the coal, iron and container terminals. There is a US$230-million expansion for the
port in progress. An iron ore terminal is currently in the process of construction by
PSA Sical. The terminal will have a capacity for 12 million tonnes of cargo per
year, expandable to 15/20 million tonnes per year. Facilities include a jetty, ship
loader, mechanized handling system with conveyor, storage, and a wagon

65. 65
unloading system. The port is expanding its cargo handling capacity to 87 million
tonnes a year in the next 5 years as mandated by the Union Government, according
to a press release from Ennore Port Ltd.
With the inauguration of three new terminals to handle non-TNEB coal, iron ore
and cars in 2010, the installed capacity of the port had doubled from 15 million
tonnes to 30 million tonnes.
A 1,700-million capital dredging project was commenced at the port on 26
February 2011.
Rail link:
Rail connectivity project works to link coal and iron ore stackyards with Athipattu
station on the Chennai–Vijayawada mainline is under the implementation at a cost
of 516 million.
Connectivity:
The highway authority is implementing a project for construction of 30.1 km
(18.7 mi) segment of Chennai-Ennore Port connectivity. Announced by the Tamil
Nadu Government in 1998, the cost of the Chennai-Ennore Port Road Connectivity
project, earlier called Ennore-Manali Road Improvement Project, has escalated by
four times to 6,000 million. The project is to enable free flow of truck traffic from
and to the Chennai port in North Chennai. The Ennore Port handles over 5,000
containers a day and trucks need to take this Ennore-Manali road for entry and exit
to the port. The project is still in the "tendering" stage—previous tenders were
cancelled for various reasons.
The project will commence in January 2011 and will be completed in 2 years.
The Union Government has decided to lay a 21.1-kilometre (13.1 mi)-long 4-laned
national highway (port corridor) connecting Ennore with Thacchur at a cost of
3,740 million.

66. 66
4. HAZIRA PORT:
India: Hazira
Locationof Hazira
Country in Gujrat and India
State Gujarat
District(s) Surat
Nearestcity Surat
Civic agency
Hazira Area Development
Authority
Population
• Density
67,829 (2009)
• 404 /km2 (1,046 /sq mi)
Time zone IST (UTC+05:30)
Area
• Elevation
168 km2 (65 sq mi)
• 2 meters (6.6 ft)
Codes
• Pin code • 394230
• Telephone • +0261
• Vehicle • GJ-5
Transport
Hazira is 300 kilometers north of Mumbai, 21 kilometers from Surat city and 31
kilometers from Udhana. Access is via NH-6 and NH-8. A new coastal highway

67. 67
connecting Hazira with Navsari which will reduce the commute time has been
planned. The project to broaden NH-6 from four to six lanes is under construction
with the National Highways Authority of India (NHAI).
Port: Hazira Port is a joint-venture between Shell Gas B.V. and Total Gaz
Electricite Holdings of France. Shell holds 74% in the venture, with Total holding
the remainder .
Hazira is a Port Town and a transshipment port in the Surat district in the
state of Gujarat in southwestern India.
Hazira is one of the major ports of India and most important element of Region. It
is also known as the industrial hub of India. The town is located on the bank of the
Tapti River, eight kilometers’ from the Arabian Sea. It is a centre for health
tourism due to its natural springs, and also home to major industrial and shipping
facilities like Essar Group of Industries, Shell, Larsen & Toubro & Reliance.

68. 68
5. Kandla Port:
Country India
State Gujarat
District(s) Kutch
Area
• Elevation • 3 metres (9.8 ft)
Codes
• Vehicle • GJ-12
Kandla is a seaport in
Kutch District of Gujarat state in
western India. Located on the Gulf
of Kutch, it is one of major ports
on west coast. Kandla was
constructed in the 1950s as the
chief seaport serving western
India, after the partition of India from Pakistan left the port of Karachi in Pakistan.
After Indian independence in the late 1940s, the new government selected the Port
of Kandla as a promising outlet to the Arabian Sea. When the Port of Karachi was
lost to Pakistan, maritime trade in the area shifted to the Port of Mumbai (formerly
Bombay). The Port of Kandla Special Economic Zone (KASEZ) was the first
special economic zone to be established in India and in Asia. Established in 1965,
the Port of Kandla SEZ is the biggest multiple-product SEZ in the country.
Covering over 310 hectares, the special economic zone is just nine kilometers from
the Port of Kandla. Today, the Port of Kandla is India's hub for exporting grains
and importing oil. This self-sufficient port is one of the highest-earning ports in the
country. Major imports entering the Port of Kandla are petroleum, chemicals, and
iron and steel machinery, but it also handles salt, textiles, and grain.

69. 69
Facilities:
• Total Custom Bonded Port
Area inside the custom
fencing is 185 hectares. An
additional 76.5 hectares is
being developed shortly.
• Eleven Dry Cargo Berths in
straight quay line in sheltered
creek with a
totallengthof1987meters.
• Six Oil jetties.
• Total Custom Bonded Port
Area inside the customfencing is 185 hectares. An additional 76.5 hectares is
being developed shortly.
• Loading/Unloading facilities for barges available for stream handling.
• Seventy licensed private Barges available at competitive rates.
• Adequate storage capacities in bothDry and Liquid Areas.
• Well Developed Road Network directly connecting to National Highway and
Railway Network connecting to the Broad Gauge Train Routes which is further
being upgraded.
Cyclone of 1998:
A tropical cyclone hit the port in 1998. The official death toll was 1,000
but locals in the area believed it was closer to 10,000. Most of the casualties came
from illegal immigrant workers in the port itself and poor shanty towns in the
region. Although the cyclone was tracked by the Indian government for 3-4 nights
no effort was made to warn port employees this catastrophe shows a failure of
government and business ethics and a complete disregard for the life of the poor.

70. 70
6. Port of Kolkata
The Port of Kolkata is a riverine port
in the city of Kolkata, India. It is the oldest
operating port in India, having originally been
constructed by the British East India
Company. The Port has two distinct dock
systems - Kolkata Docks at Kolkata and a deep
water dock at Haldia Dock Complex, Haldia.
In the 19th century Kolkata Port was
the premier port in British India. After
independence its importance decreased
because of factors including the Partition of Bengal (1947), reduction in size of the
port hinterland and economic stagnation in eastern India. In the 21st century due to
the east Indian economic recovery and infrastructure improvements, the port grew
swiftly to become the nation's third largest container port. It was one of India's
fastest growing ports in 2004-05.
History:
View of the Calcutta Port in
1852
Kolkata Port was set up by
the British East India
Company after the company
received trading rights from
the Mughal emperor
Aurangzeb.


71. 71
Following the shift of power from the company to the British crown, a port
commission was set up in 1870. After the independence, the Commissioners for
the Port of Kolkata was in responsibility of the port till January 1975 when Major
Port Trusts Act, 1963, came into force.
Kolkata Dock System (KDS):
It is situated on the left bank of the Hooghly River at 22° 32' 53" N, 88° 18' 5" E
— about 203 km (126 miles) upstream from the sea. The pilotage station is at
Gasper/ Saugor roads, 145 Kilometers to the south of the KDS (around 58 km from
the sea). The system consists of:
 Kidderpore Docks (K.P. Docks) : 18 Berths, 6 Buoys / Moorings and 3 Dry
Docks
 Netaji Subhas Docks (N.S. Docks): 10 Berths, 2 Buoys / Moorings and 2
Dry Docks
 Budge Budge River Moorings : 6 Petroleum Wharves
 Anchorages: Diamond Harbour — 1. Saugor Road 2. Sand heads
Apart from this, there are around 80 major riverine jetties, and many minor jetties,
and a large number of ship breaking berths.
Haldia dock complex (HDC):
It is situated at 22°02' N, 88°06 E — 60 kilometers away from the pilotage
station. The complex consists of:
 Impounded Dock. System with 12 Berths
 3 Oil Jetties in the River
 3 Barge Jetties in the River for handling Oil carried by Barges.
 Haldia Anchorage for LASH vessels
All the docks are impounded dock systems with locks from river

72. 72
7. Port of Cochin
Location
Country India
Location Kochi
Details
Opened May 26, 1928
Operatedby Cochin PortTrust and Dubai Ports World
Owned by Ministry of Shipping, Government of India
Available
berths
9 berths in Ernakulam Wharf and 4 berths in Mattancherry Wharf
Wharfs 2
Chairman Shri N. Ramachandran, IPS
Statistics
Annual
container
volume
2,89,817 TEU (2009)
Value of cargo 17.43 million tonnes
Website CochinPort.com
The office of the Cochin Port Trust in Willingdon Island
The Port of Kochi
(officially the Cochin
Port) is a major port on
the Arabian Sea - Indian
Ocean sea-route and is
one of the largest ports in
India. The port lies on
two islands in the Lake of
Kochi namely the

73. 73
Willingdon Island and Vallarpadam, towards the Fort Kochi river-mouth opening
onto the Arabian Sea. The Vallarpadam International Container Trans-shipment
Terminal (ICTT), a part of the Cochin Port, is the largest container trans-shipment
facility in India.
The port is governed by the Cochin Port Trust, a Government of India
establishment. The modern port was established in 1926 and has now completed 86
years of active service.
The Kochi Port is one among a line of maritime-related facilities based in
the port-city of Kochi, the others being, the Cochin Shipyard, the largest ship-
building as well as maintenance facility in India, the SPM (Single Point Mooring
facility) of the Kochi Refineries - an offshore crude carrier mooring facility, and
the Kochi Marina.
History:
The Cochin port was formed naturally due the great floods of Periyar in
1341 AD, which choked the Muziris port (Kodungallur), one of the greatest ports
in ancient world. Ever since the choking of Muziris, Cochin became one of the
major ports with extensive trading relations Romans, Greeks and Arabs, all lured
by the traditional spice wealth of the state. The traditional port was located near
Mattancherry (which still continues as Mattancherry Wharf).
The construction of the dredger `Lord Willingdon' was completed in 1925.
It arrived at Cochin in May 1926. It was estimated that the dredger had to be put to
use for at least 20 hours a day for the next two years. . The dredged sand was used
to create a new island to house Cochin Port and other trade related establishments.
Around 3.2 km² of land was reclaimed during the dredging process. The strong
determination of Sir Bristow and his team, finally paid success, when large steam
ship SS Padma, sailed into sailing from newly constructed inner harbour of Kochi.
Speaking to the BBC on that day, Bristow proudly proclaimed his achievements at

74. 74
the Kochi port with the following words: I live on a large Island made from the
bottom of the sea. It is called Willingdon Island, after the present Viceroy of India.
From the upper floor of my house, I look down on the finest harbour in the East.
In 1932, the Maritime Board of British India declared Port of Cochin as a
major port. The port was opened to all vessels up to 30 feet draught. During the
World War-2, the port was taken over by Royal Navy to accommodate several
military cruisers and war ships. The port was returned to civil authorities on May
19, 1945. After Independence, the port was taken over by Government of India. In
1964, the administration of the Port got vested in a Board of Trustees under the
Major Port Trusts Act. The port was listed as one among 12 major ports of India.
Organizational structure:
Cochin Port Trust is an Autonomous Body under Govt.of India and is
managed by Board of Trustees constituted by the Government of India. The Board
is headed by the Chairman who acts as the Chief Executive Officer. The Govt.of
India may from time to time nominate the trustees in the Board representing
various interests. Chairman is assisted by the Deputy Chairman who in turn is
assisted by Department Heads and officials of the following departments
functioning in the Port.
a) General Administration Department.
b) Traffic Department.
c) Accounts Department.
d) Marine Department.
e) Civil Engineering Department.
f) Mechanical Engineering Department.
g) Medical Department