Sei sulla pagina 1di 96

INTRODUCTION TO THE STUDY

Project Title
A study on the cargo operations at Cochin port trust with special reference to
Break Bulk cargo.
Statement of problem
In shipping, break bulk cargo or general cargo is a term that covers a great
variety of goods that must be loaded individually, and not in intermodal
containers. The term break bulk derives from the phrase breaking bulkthe
extraction of a portion of the cargo of a ship or the beginning of the unloading
process from the ship's holds. Break bulk cargo is transported in bags, boxes,
crates, drums, or barrels.
Break bulk was the most common form of cargo for most of the history of
shipping. Since the late 1960s the volume of break bulk cargo has declined
dramatically worldwide as containerization has grown. Moving cargo on and off
ship in containers is much more efficient, allowing ships to spend less time in
port. Break bulk cargo also suffered from greater theft and damage.
Cargo handling is one of the main services offered by Cochin port trust. The
major types of cargo handled are as follows:
1. Break Bulk iron and steel, timber
2. Dry Bulk fertilizers, sulphur
3. Liquid Bulk liquid ammonia, petroleum products
This study focuses on finding the problems associated with the Break Bulk
Cargo operations at Cochin Port Trust and to find out suggestions in improving
the Break Bulk Cargo Operation.

Objectives of the Study


To identify the traffic and cargo Profile at Cochin port trust.
To identify the various problems faced during the operation of Break
Bulk Cargo.
To give suggestions to improve the efficiency of Break Bulk Cargo
operations at Cochin Port Trust.
Methodology
The Research Methodology adopted for the study has been presented in the
below paragraphs
In this study both primary and secondary data has been used.
Primary Data
The primary data was collected from the respondents by giving structured
questionnaires and thereafter interpreting, compiling and analysing the data
from the questionnaires.
Secondary Data
Apart from the primary data, secondary data was collected from the
administration report, company websites and various reports.
Tools for Data Analysis
Percentage
Average
Statistical Tools
The statistical tools used in this study are as follows:
Tables
Pie Charts
Bar Charts

Limitations of the study


The respondents were busy with their own routine work, hence were not
interested in spending time for filling up the questionnaires
Unwillingness of the employees in filling up the questionnaires
The availability of the respondents were low
Some of the employees were reluctant in revealing their honest views for
the questions answered

LITERATURE REVIEW
Introduction
In shipping, break bulk cargo or general cargo is a term that covers a great
variety of goods that must be loaded individually and not in intermodal
containers. Ships that carry this sort of cargo are often called general cargo
ships. The term break bulk derives from the phrase breaking bulkthe
extraction of a portion of the cargo of a ship or the beginning of the unloading
process from the ship's holds. These goods may not be in shipping containers.
Break bulk cargo is transported in bags, boxes, crates, drums, or barrels.
A break-in-bulk point is a place where goods are transferred from one mode of
transport to another, for example the docks where goods transfer from ship to
truck.
Break bulk was the most common form of cargo for most of the history of
shipping. Since the late 1960s the volume of break bulk cargo has declined
dramatically worldwide as containerization has grown. Moving cargo on and off
ship in containers is much more efficient, allowing ships to spend less time in
port. Break bulk cargo also suffered from greater theft and damage.
Break Bulk cargo mainly includes the following:

Iron and steel


Food grains
Coffee
Marine Products
Cements
Sugar
Machinery
Raw cashew
Coal
Spices

Loading and Unloading of Break Bulk Cargo


Although cargo of this sort can be delivered straight from a truck or train onto a
ship the most common way is for the cargo to be delivered to the dock in
advance of the arrival of the ship and for the cargo to be stored in warehouses.
4

When the ship arrives the cargo is then taken from the warehouse to the quay
and then lifted on board by either the ship's gear (derricks or cranes) or by the
dockside cranes. The discharge of the ship is the reverse of the loading
operation.
Loading and discharging by break bulk is labour intensive. The cargo is brought
to the quay next to the ship and then each individual item is lifted on board
separately. Some items such as sacks or bags can be loaded in batches by using
a sling or cargo net and others such as cartons can be loaded onto trays before
being lifted on board. Once on board each item must be stowed separately.
Advantages and Disadvantages of Break Bulk Cargo Operations
The biggest disadvantage with break bulk is that it requires more resources at
the wharf at both ends of the transportlongshoremen, loading cranes,
warehouses, transport vehiclesand often takes up more dock space due to
multiple vessels carrying multiple loads of break bulk cargo. Indeed, the decline
of break bulk did not start with containerisation; rather, the advent of tankers
and bulk carriers reduced the need for transporting liquids in barrels and grains
in sacks. Such tankers and carriers use specialised ships and shore facilities to
deliver larger amounts of cargo to the dock and effect faster turnarounds with
fewer personnel once the ship arrives; however, they do require large initial
investments in ships, machinery, and training, slowing their spread to areas
where funds to overhaul port operations and/or training for dock personnel in
the handling of cargo on the newer vessels may not be available. As
modernization of ports and shipping fleets spreads across the world, the
advantages of using containerization and specialized ships over break-bulk has
sped the overall decline of break-bulk operations around the world. In all, the
new systems have reduced costs as well as spillage and turn round times, in the
case of containerisation, damage and pilfering as well.
Break bulk continues to hold an advantage in areas where port development has
not kept pace with shipping technology; break-bulk shipping requires relatively
minimal shore facilitiesa wharf for the ship to tie to, dock workers to assist in
unloading, warehouses to store materials for later reloading onto other forms of
transport. As a result, there are still some areas where break-bulk shipping
continues to thrive. Goods shipped break-bulk can also be offloaded onto
smaller vessels and lighters for transport into even the most minimallydeveloped port where the normally large container ships, tankers, and bulk
5

carriers might not be able to access due to size and/or water depth. In addition,
some ports capable of accepting larger container ships/tankers/bulk transporters
still require goods to be offloaded in break-bulk fashion.

INDUSTRY PROFILE
Introduction
A port is allocation on a coast or shore containing one or more harbours where
ships can dock and transfer people and cargo to or from land. Port locations are
selected to optimise access to land and navigable water, for commercial
demand, and for shelter from wind and waves. Ports with deeper water are rarer,
but can handle larger, more economical ships. Since ports throughout history
handled every kind of traffic, support and storage facilities vary widely, may
extend for miles, and dominate the local economy. Some ports have an
important, perhaps exclusively military role. A port provides facility for
receiving ships and transferring cargo and from them. They are usually situated
at the edge of the ocean or sea, river or lake.
Ports often have cargo or handling equipments such as cranes and fort lifts for
use in loading or unloading ships, which may be provided by private interest or
public bodies. Harbour pilots burgs, and tug boats are often used to safety
manoeuvre large ships in tight quarters as they approach and leave the docks.
The ports that handle international traffic will have customers facilities. Cargo
containers allow for efficient transport and distribution by eliminating the need
for smaller packages to be loaded individually at each transportation point, and
allowing the shipping unit to be sealed for its entire journey. Standard
containers can just as easily be loaded on a ship; train, truck or plane, greatly
implying intermeddle transfers. Cargo often arrives by train and truck to be
consolidated at a port and loaded on to a large containership for international
transport. At the destination port, it is distributed by ground transport once
again.
Port and shipping containers are a vital part of modern just in time inventory
management strategies. Port sometimes fall out of use Ryes, East Sussex,
England was an important port in the Middle Ages, but the coastline changed
and it is now two miles from the sea. Also in London, on the River Thames, and
Manchester, on the Manchester ships canal, were once important international
ports, but are no longer so.
The worlds busiest port is contested by several ports around the world, as there
is as yet no standardised means of evaluating port performance and traffic. The
7

most keenly fought over this for the past decade was between the port of
Rotterdam and port of Singapore, with both ports claiming the busiest port.
TYPES OF PORT
The term port and seaport are used for ports that handle ocean going vessels,
and river port is used for facilities that handle river traffic. The different types
of ports are as follows:
1. INLAND PORT
Some ports are on a lake, river or canal has access to a sea or ocean, and they
are called inland ports. Inland Ports are located on rivers and do not handle deep
draft ship traffic. The list includes familiar ports such as St. Louis, Cincinnati,
Pittsburgh, and Memphis.
2. FISHING PORT
A fishing port is a port or harbour for landing and distributing fish. It may be a
recreational facility, but it is usually commercial. A fishing port is the only port
that depends on an ocean product, and depletion of fish may cause a fishing port
to be uneconomical. In recent decades, regulations to save fishing stock may
limit the use of a fishing port, perhaps effectively closing it.
3. DRY PORT
A dry port is a term sometime used to describe a yard used to place containers
or conventional public cargo, usually connected to a seaport by rail or road. The
presence of deep water in channels or berths, the provision of protection from
the wind, waves and storm surges and access to intermeddle transportation such
as trains or trucks are critical to the functioning.
4. WARM PORTS
A warm water port is one where the water does not freeze in winter time.
Because they are available year-round, warm water ports can be of great
geopolitical or economic interest. Such settlements as Vostochny Port,
Murmansk and Petropavlovsk-Kamchatsky in Russia, Odessa in Ukraine,
Kushiro in Japan and Valdez at the terminus of the Alaska Pipeline owe their
very existence to being ice-free ports.

5. CRUISE PORT
A cruise port is the port where cruise-ship passengers board (or embark) to start
their cruise and disembark the cruise ship at the end of their cruise. It is also
where the cruise ship's supplies are loaded for the cruise, which includes
everything from fresh water and fuel to fruits, vegetable, champagne, and any
other supplies needed for the cruise. Currently, the Cruise Capital of the World
is the Port of Miami, Florida, closely followed behind by Port Everglades,
Florida and the Port of San Juan, Puerto Rico.
6. PORT OF CALL
A port of call is an intermediate stop for a ship on its sailing itinerary, which
may include up to half a dozen ports. At these ports, a cargo ship may take on
supplies or fuel, as well as unloading and loading cargo is carried out. But for a
cruise ship, it is their premier stop where the cruise lines take on passengers to
enjoy their vacation.
7. CARGO PORTS
Cargo ports, on the other hand, are quite different from cruise ports, because
each handles very different cargo, which has to be loaded and unloaded by very
different mechanical means. The port may handle one particular type of cargo or
it may handle numerous cargoes, such as grains, liquid fuels, liquid chemicals,
wood, automobiles, etc. Such ports are known as the "bulk" or "break bulk
ports". Those ports that handle containerized cargo are known as container
ports. Most cargo ports handle all sorts of cargo, but some ports are very
specific as to what cargo they handle. Additionally, the individual cargo ports
are divided into different operating terminals which handle the different
cargoes, and are operated by different companies, also known as terminal
operators.

ECONOMIC IMPORTANCE OF PORTS


Ports constitute an important economic activity in coastal areas. The higher the
throughput of goods and passengers year-on-year, the more infrastructures,
provisions and associated services are required. There will varying degrees of
benefits to the local and regional economy and to the nation as a whole. Ports
are also important for the support of economic activities in the hinterland since
they act as a crucial connection between sea and land transport. As a supplier of
jobs ports do not only serve an economic but also a social function. Some of the
importance ports are as follows:

Ports play an essential role in economic development


Export of mineral ore become profitable
Direct access to worldwide markets
Excellent source of employment for workmen and commercial office
Various auxiliary services to cargo and vessels
Significant source of additional foreign exchange which represents
desirable regular earning from foreign sources like;
Ports due on vessels
Payment for stevedoring
Payment for repairs
Payment for ship suppliers
Agency fees
Promotes tourism (providing berthing facilities for cruise ships)
Political dependence can easily develop

10

PORT FUNCTIONS
Ports are a component of freight distribution as they offer a maritime / land
interface for export and import activities. They are points of convergence of
inland and coastal transportation systems, defining a port's hinterland. This
function may be direct, as freight reaches a port directly through road
transportation, or indirect as freight reaches a port though an inland port or
through traffic consolidation at a regional port and shipped by coastal
transportation. Likewise, ports are points of distribution to inland and coastal
transportation systems, defining a port's foreland. At the local level, every port
provides services to ships with berths, docks, navigation channels and repairs
(occasionally), and services to merchandises with cranes, warehouses and
access to inland distribution systems.
Within the port system, one or more organisations fill the following roles:
Landlord for private entities offering a variety of services
In view of the strategic significance of land, port property is rarely sold outright
to private parties because of its direct and indirect effects on regional and often
national economy and public welfare, its intrinsic value, and possible scarcity.
Therefore, a key role for many port authorities is that of the landlord with the
responsibility to manage the real estate within the port area. This management
includes the economic exploitation, the long term development, and the upkeep
of basic port infrastructure such as fairways, berths, access roads, and tunnels.
Regulator of economic activity and operations
Port authorities often have broad regulatory powers relating to both shipping
and port operations. The authority is responsible for applying conventions, laws,
rules, and regulations. Generally, as a public organ it is responsible for
observance of conventions and laws regarding public safety and security,
environment, navigation, and heath care. Port authorities also issue port bylaws,
comprising many rules and regulations with respect to the behaviour of vessels
in port, use of port area and other issues. Often extensive police powers are also
assigned to the port authority.
Operator of nautical service and facilities

11

Oversight of nautical operations should be within a port authoritys mandate and


is often referred to as Harbourmasters function. It generally comprises all legal
and operational task related to the safety and efficiency of vessels management
within the boundaries of the port area. The Traffic managers office allocates
berths and Marine department coordinates all service necessary to berth and unberth a vessel. These services include pilotage, mooring and unmooring, and
vessel traffic services (VTS). Often, the harbourmaster is also in charge with
leading role in management of shipping and port related crises (for example,
collisions, explosions, natural disasters, or discharge of pollutants). In view of
its general safety aspects, the harbourmasters function has a public character.
Marketer and promoter of port services and economic development
The port marketing and promotion function is a logical extension of port
planning function. Port marketing id aimed at promoting the advantages of the
entire port complex for both the port authority to attract new clients and for the
port industry to generally promote its business. This type of broad marketing is
distinct from customer- oriented marketing that is aimed at attracting specific
clients and cargoes for specific terminals or services.
Cargo handler and storage
The cargo handling and storage comprises all activities related to loading and
discharging seagoing and inland vessels, including warehousing and intra-port
transport.
Provider of ancillary activities
A variety of ancillary functions such as pilotage, towage and ship chandelling,
fire protection services, linesman services, port information services, and liner
and shipping agencies exist within port community. Large port authorities
usually do not provide these services, with the possible exception of pilotage
and towage. In a number of smaller ports, however, these are part of the port
authority operations because of the limited traffic base.
Planning for future operations and capital investments
The planning function of the port authority in coordination with the
municipality is a complicated affair, especially for large ports located within or
near a city. The port planner has to consider:

12

The consistency of plans with the general terms of land use that have
been set by the competent authority.
The impact of port development proposals on the immediate surroundings
(environment, traffic, facilities and roads).
The appropriateness of port development proposals in the context of
international, national, and regional port competition.
Actual port services and balancing of supply and demand occur at the levels of
the port authority and individual port firms. Hence, the development of realistic
investment projects for infrastructure and superstructure should be initiated at
these levels. Investment plans of industrial and commercial port operators or
projects for specific cargo handling, storage, and distribution should be
integrated at the level of the port authority to arrive at a strategic master plan for
the port. The individual master plans may then be integrated into national
seaport policy, taking into account macroeconomic considerations. Integration
of individual master plans will help to avoid duplication of expensive,
technologically advanced facilities when different ports in a national system
strive to attract the same customers as well as ensure the selection of the
appropriate locations for specific seaport facilities that will interconnect
maritime and land transport systems.
Regulator for maritime safety, security, and environmental control
Competition within and between ports has a bearing on the management
structure of the port and the relations between the port authority and terminal
operators and the cargo handling companies. These changing relations are often
cited as an important reason for changing port management structure. Many
ports authorities consider the creation of competitive conditions among port
operators the cornerstone of their port policy. One can distinguish between
inter-port competition (completion between different ports) and intra-port
competition (competition between different enterprises within one port
complex). To reduce the risk of monopolies, port authorities usually stimulate
intra-port competition. However, medium sized and smaller ports, because of
their limited traffic, often accommodate only one port terminal operator. In such
cases, port authorities often use their quasi-governmental powers to regulate
port charges and tariffs.

KEY FATORS AFFECTING INTER PORT COMPETITON:


13

1. Geographic location: A port that is strategically located close to well


established transport routes has competitive advantages. A strategic
location typically possesses at least the following characteristics:
Proximity to one or major maritime routes.
Natural deep water, good protection against waves and currents,
large waterfront and landside expansion possibilities.
Proximity to major production or consumption areas.
Good hinterland connections (road, rail, pipeline, and waterway)
with high frequency service offering good connectivity.
2. Legal Framework: The well-balanced national and local legal
framework applicable to port management greatly bolsters investor
confidence. Many countries have enacted specific port laws dealing with
powers and responsibilities of the various actors in the sector. Moreover,
land and competition laws are equally important, as well as an
independent judiciary.
3. Financial resources: A port with sufficient financial means of its own or
the capacity to raise the funds required to develop and improve the port
has a competitive advantage over the ports with resources or no financial
autonomy.
4. Institutional structure and socio-economic climate: The management
structure of the port must be conducive to private sector investment.
Related to this is the socioeconomic climate in the port; private investors
prefer ports with a sufficient and well-trained labour force and good
relations between employees and employers.
5. Efficiency and price: Various investigations indicate that port costs are
an important, although not decisive, factor in making choices, especially
for cargo owners or their representatives. In a world where manufacturers
seek to trim costs and improve customer service through the adoption of
sophisticated logistics processes, efficiency and the price performance
ratio are increasingly important.
6. Image of the port: The image that the port projects is another factor in ist
competitiveness. The preferred image is an optimum mix of the above
mentioned components.
GLOBAL SCENARIO

14

For many centuries, shipping has enabled collaboration around the world.
Today, modern shipping business is a complex, global puzzle made out of many
pieces. The past few years alone have brought about fundamental changes. The
significance of East Asia has increased rapidly spearheaded by China. We could
even say that Globalisation as we know it would not have happened without
shipping.
Currently shipping is rightfully said to be the most efficient and cleanest way of
transporting goods over long distances. Shipping would continue to continue to
be part of transportation matrix.
Cartels and bilateral agreements have overtaken free markets. GDP growth is
limited and unevenly distributed. Resources are scarce and have therefore
become a source of power. Wealth is divided unequally among nations.
New trade routes have emerged as a result of two key developments, an increase
in bilateral agreements and industries moving to resource areas. The volumes of
water and agricultural products being transported have increased significantly.
The entire logistics chain is optimised regionally. Fleets are partly nationalised
and era of flags of convenience (registering a ship in a foreign country to avoid
regulation) has come to an end. Oil tankers are decreasing in number and LNG
carriers take on a bigger role instead. In regional trade, smaller ships optimise
cargo transports. The change pattern of goods has reduced container traffic and
some major container terminals have closed down. In general, national
governments control ports.
Climate change is perceived as a threat, not an opportunity, and only local and
regional solutions are in place to cope up with this challenge. Environmental
changes have led to the development of new types of vessels, desalination,
waste management and recycling ships are anchored outside megacities, serving
their needs.
Most of the big shipping companies are owned Chinese owned, and trade routes
have shifted according to Chinese trade interests. New ports are being in build
in Africa, Eastern Russia and India, and Chinese ports have grown into
sophisticated, integrated logistics centres.

INDIAN SCENARIO
15

Introduction
India has a long coastline spanning 7600 kilometres forming one the worlds
biggest peninsulas of the world. It is serviced by 12 government and 1 corporate
major port and 187 notified minor ports and intermediate ports. The latest
addition to the major ports is Port Blair on June 2010. With the declaration Port
Blair has become the 13th major port in the country. India is today among the
top17 maritime nations in the world. The ministry of shipping has laid great
emphasis on the productivity aspect and benchmarking of quality ports and
most importantly in making the ports cost effective. Almost all the major ports
acquired ISO-9000 certification. The major ports are now in the process of
revising their standards in compliance with ISO 9002-2000 standards. Indian
ports are the major players in the shipping industry. They play a prominent role
in the import and export of materials via the sea route from and to various
destinations around the globe.
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 of
the 9 coastal states of West Bengal, Orissa, Andhra Pradesh, Tamil Nadu,
Kerala, Karnataka, Goa, Maharashtra and Gujarat. Several of the 185 minor and
intermediate ports are merely notified, with little or no cargo handling
actually taking 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.

Ports of India(Figure 1)

16

India has total 13 major ports out of which there are 12 government ports and 1
corporate port. The Port Blair was declared 13th major port of the country in the
year 2010. There are 200 minor port and intermediate ports out of which some
are privately owned. The ports are classified into major, minor or intermediate
as per administrative signification.

MAJOR PORTS OF INDIA

Kolkata Port Trust


Mumbai Port Trust
Chennai Port Trust
Cochin Port Trust
Visakhapatnam Port Trust
Paradip Port Trust
Mormugao Port Trust
Jawaharlal Nehru Port Trust
V. O. Chidambaranar Port Trust
Bombay Port Trust
Vizag Port Trust
Haldia Port Trust
Port Blair Port Trust

17

INDIAS MARITIME TRADE


India is almost an island as far as trade is concerned. There is limited trade by
land with the countries neighbours and the bulk of the trade is seaborne. Ninety
percent of India international trade by volume and seventy seven percent values
is carried by sea. Exports in India increased to 1348.08 INR Billion in May of
2013 from 1313.95 INR Billion in April of 2013. Exports in India are reported
by the Directorate General of Commerce. India Exports averaged 240.93 INR
Billion from 1978 until 2013, reaching an all time high of 1678.36 INR Billion
in March of 2013 and a record low of 3.75 INR Billion in May of 1978. Indias
main exports are engineering goods (19 percent of total exports), gems and
jewelry (15 percent), chemicals (13 percent), agricultural products (9 percent)
and textiles (9 percent). India is also one of Asias largest refined product
exporters with petroleum accounting for around 18 percent of total exports.
Indias main export partners are United Arab Emirates (12 percent of total
exports) and United States (11 percent). Others include: China, Singapore, Hong
Kong and Netherlands.
In the 2012-13 fiscal, the value of the merchandise exports stood at USD 301
billion. Indian maritime has been prospering enough, to make it a nation
counted amongst the elite. Indian maritime trade makes up for the lions share in
the annual economic growth report.
The Indian Ocean comprises a fifth of the water surface of the earth, peopled by
the third of the worlds population. India has been a grand maritime nation with
a strategic geographical position in the Indian Ocean. The Indian peninsula juts
into Indian Ocean, astride the major shipping lanes of the world, which provide
the shortest route between the Atlantic and the pacific oceans. Indias place
among the maritime nations was well recognised by the countrys foresighted
ancestors. Indian maritime trade is replete with instances, where India
benevolent influence spread to the east and west through the nations seafaring
18

people and the medium of oceans. It was with the arrival of the Mughals, the
landlocked tribe of Central Asia, that importance of the seas was forgotten.
India paid a heavy price for it, becoming a susceptible prey to the advancing
maritime colonial power. India derives its potential strength from being strong
at sea. India is perhaps the only country whose name has been attached to a
great ocean. The country also shares maritime boundaries with seven nations in
the Indian Ocean. Its strategic geographic position with a long coastline and
island territories provides India with a great advantage in the maritime field.
Indias strategic position in the Indian Ocean is clearly apparent when seen in
the context of the massive flow of the trade through the sea-lines of
communications, which join the major regions of west and east. Sea borne trade
passing through the Indian Ocean amounted to almost fifteen percent of the
entire world trade. Nearly 200 ships pass through Malacca strait every day.
Twenty-eight passed through Strait of Hormuz, carrying nearly twenty percent
of the world trade in volume. Over half of the United States requirement of oil
passes through this route. One third of the total ships in the world and over half
of the entire shipping capacity take passage through these choke points. With
Indian Ocean and even Bay of Bengal administering and aiding in Indian
maritime trade in significant amounts, the country can never fall short into a
seaborne business and profit.

19

MAJOR PLAYERS IN INDIAN SHIPPING INDUSTRY


The Indian shipping industry consists of about 616 ships, with a total capacity
of 6.62 million tons Gross Registered Tonnage (GRT). Of these, about 258 ships
are engaged in overseas trade and the rest ply inland routes. After a period of
decline, both tonnage and fleet size have grown recently, with the Indian shipstugs, survey vessels as wells as pilot vessels-belonging to ports and maritime
boards. There are about 55 shipping companies in the sector, of which 19 deal
exclusively in coastal trade, and 29 are engaged in overseas trade. The rest
operate in both types of trade. The major players of shipping industry are as
follows:
SHIPPING CORPORATION OF INDIA
The Shipping Corporation of India was established on October 2nd, 1961, by
the amalgamation of Eastern Shipping Corporation and Western Shipping
Corporation.
Starting out as a marginal Liner shipping Company with just 19 vessels, the
SCI has today evolved into the largest Indian shipping Company. The SCI also
has substantial interests in various segments of the shipping trade. SCIs owned
fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container
vessels, and Passenger-cum-Cargo vessels, Phosphoric Acid/Chemical carriers,
LPG/Ammonia carriers and Offshore Supply Vessels. Sailing through for nearly
five decades, the SCI today has a significant presence on the global maritime
map.
As the countrys premier shipping line, the SCI owns and operates around onethird of the Indian tonnage, and has operating interests in practically all areas of
the shipping business; servicing both national and international trades.
In view of the demand from Indian trade, the SCI has diversified into a large
number of areas. The SCI is today the only Indian shipping Company operating:
20

break-bulk services, international container services, liquid/dry bulk services,


offshore services, passenger services. In addition, the SCI mans and manages a
large number of vessels on behalf of various government departments and
organizations.
The services provided include:

Tankers
Bulk carriers
Chartering
Coastal and passenger services
Break Bulk services

GREAT EASTERN SHIPPING COMPANY


Great Eastern Shipping Company is Indias largest private sector shipping
company having experience and expertise spanning over 6 decades. The
company has two main businesses: shipping and offshore. The shipping
business is involved in transportation of crude oil, petroleum products, gas and
dry bulk commodities. The offshore business services to the oil companies in
carrying out offshore exploration and production activities is through its
subsidiary, Great ship (India) Limited. The shipping business has been
awarded the ISO 9001: 2000 standard certification by DNV.
Backed by an enviable clientele comprising industry leaders, international oil
companies and governments who vouch for its services, the division has earned
the status of being the most preferred shipping service provider. With a pulse on
the global market and a thorough understanding of the ever-evolving market
needs, the division is well-equipped to anticipate the demands of its clients and
to deliver on its commitments, successfully and satisfactorily.

JITF VECTOR
JITF Waterways Ltd. brings JITF Vector, the Short Sea & River Transport
venture of Jindal SAW Ltd. The company is a part of the US$ 20 billion O.P.
Jindal Group (4th largest business house in India) with established leadership
positions in steel, mining, power, energy, infrastructure, water, wastewater, solid
waste management and waste to energy. JITF Vector is Indias first total
logistics solutions provider with a high-frequency and high reliability services.
21

JITF Vector is setting new standards in cargo transportation along the Indian
coastline and inland waterways. With a fleet of eight vessels, including five
container ships, options from short sea shipping containers to break bulk ships
and an assurance of reliability. The company has a network combining highquality intermodal operations with state-of-the-art information technology.

ORGANISATIONAL PROFILE
Introduction
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: Willingdon Island and Vallarpadam, towards the Fort Kochi river mouth
opening onto the Arabian Sea. The International Container Transhipment
Terminal (ICTT), part of the Cochin Port, is the largest container transhipment
facility in India.
The port is governed by the Cochin Port Trust (CPT), a government of India
establishment. The modern port was established in 1926 and has completed 86
years of active service.
Cochin port is one of the major ports in India. Cochin Port Trust is a body of the
government of India that manages the Port of Cochin. Operating from the
Willingdon Island, the port is located at latitude 9 degree 58 north and
longitude 76 degree 14 east. The port inaugurated Indias first international
Container Transhipment Terminal on Build operate transfer basis with Dubai
Ports World, in the island of Vallarpadam, north of Willingdon Island.
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, Cochin became one of the major ports with extensive
trading relations with Romans, Chinese, Greeks and Arabs which were all lured
by the traditional spice wealth of the state. The port further attracted European
colonialists like Portuguese, Dutch and finally British who extended their
supremacy over Kochi Kingdom and the port city of Fort Kochi. The traditional
port was near Mattancherry (which still continues as Mattancherry Wharf).

22

The need of a modern port was first felt by Lord Willingdon during his
governorship of Madras Province of British India. The opening of the Suez
Canal made several ships pass near the west coast and he felt the necessity of
modern port in the southern part. He selected the newly joined Sir Robert
Bristow who was a leading British harbour engineer with extensive experience
with maintenance of the Suez Canal. Bristow took the charge of chief engineer
of Kochi Kingdom's Port Department in 1920. Ever since then, he and his team
were actively involved in making a Greenfield port. After studying the sea
currents, observing tidal conditions and conducting experiments, he was
convinced about the feasibility of developing Cochin. He believed that Cochin
could become the safest harbour if the ships entered the inner channel. The
challenge before the engineers was a rock-like sandbar that stood across the
opening of the Cochin backwaters into the sea. It was a formidable ridge of
heavy and densely packed sand that prevented the entry of all ships requiring
more than eight or nine feet of water. It was thought that the removal of the
sandbar was a technical impossibility. The potential consequence on the
environment was beyond estimation. The harm could be anything like the
destruction of the Vypeen foreshore or the destruction of the Vembanad Lake.
Bristow, after a detailed study, concluded that such data was history. He
addressed the immediate problem of erosion of the Vypeen foreshore by
building of rubble granite groynes nearly parallel with the shores and
overlapping each other. The groynes first produced an automatic reclamation
which naturally protected the shore from the monsoon seas. Confident at the
initial success, Bristow planned out a detailed proposal of reclaiming part of the
backwaters at a cost of Rs. 2.5 crores. An ad-hoc committee appointed by the
Madras government examined and approved the plans submitted by Bristow.
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 km of land was reclaimed in the dredging. The
strong determination of Sir Bristow and his team was successful when the large
steamship SS Padma, sailed into the newly constructed inner harbour of Kochi.
Speaking to the BBC on that day, Bristow proudly proclaimed his achievements
with the following words: "I live on a large Island made from the bottom of the

23

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 the Royal Navy to accommodate military
cruisers and war ships. It was returned to civil authorities on May 19, 1945.
After Independence, the port was taken over by the 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 of the 12 major ports of India.
Navigation Channel
The entrance to the Port of Cochin is through the Cochin Gut between the
peninsular headland Vypeen and Fort Cochin. The port limits extend up to the
entire backwaters and the connecting creeks and channels. The approach
channel to the Cochin Gut is about 1000 metre long with a designed width of
200 meters and maintained dredged depth of 13.8 meters.
The port of Cochin is located on the south west coast of India, in the state of
Kerala at 9o 58 and longitude 76o 14 east. The port is situated on the
Willingdon Island which is an artificial island tucked inside the backwaters. An
all weather natural port, Cochin is located strategically close to the busiest
international sea route:
1. Gulf to Singapore and Far East (Distance from Cochin port -11 nautical
miles)
2. Suez to Singapore / Far East (Distance from Cochin Port -74 nautical
Miles)
Amongst all major Indian ports, Cochin is the closest to the international
East West shipping routes. This geo strategic location of Cochin gives it a
distinct advantage.
Various Berths at Cochin Port Trust (Figure 2)
Mission
The Mission of the Cochin Port Trust is to provide dependable, cost-effective
Port services through modern and efficient infrastructure coupled with high
24

quality, customer friendly services. The Port shall manage its assets and
resources for optimal economic use to the Nation and the community. The
Port shall strive to be the main catalyst for the economic development of the
region, with a strong commitment to environmentally sound policies and
safe practices. The Board of Trustees, the employees and all stakeholders of the
Port shall work as a team in an open, positive, collaborative and cooperative
manner. In pursuit of this Mission, the Port Trust shall be guided by the
principles of integrity, ethical behaviour, professional excellence, service to the
community and respect for every individual.
Vision
The vision of the Cochin Port is to serve the country as

A public service provider


An economic development facilitator
A business enterprise
An environmental conservator

Goal
Strengthening our competitive position
Maximising space and infrastructure utilisation
Company Motto
We will go any extend to keep your cargo sailing

Corporate Objectives
1. To provide adequate services to trade and commerce so as to observe the
promotion of international trade.
25

2. To ensure efficient handling of cargo at minimum unit cost and quick


turnaround of ships.
3. To optimise the utilisation of human and material resources with due
regards to safety, quality of output and efficiency.
4. To optimise the return of investment to maintain economy in all port
spheres of port work.
5. To respond to the ports increase requirements of technically competent
managerial personnels at various levels.
6. To afford to its workers and staffs facilities that take care of their
medical, recreational and other welfare needs.

Features of Cochin Port Trust


All weather port
ISO 9001 2008 port
Closest Indian port on the international sea route
26

Walk in berthing priority


24 hour pilotage
No drafts restriction (10 12 metres around the year)
Bunkering and water services
Attractive tariff structure
Free of congestion
Higher labour productivity and cost effectiveness
Linked to main centres of country by rail, road and air
Single window clearance for customs, immigration and health clearance
Port officers at service
Least turnaround time
Warehousing capacity
0% pilferage
Star Hotels
Yatch parking zone
Marina of international standards being constructed
Hydrofoil services to Trivandrum and Calicut
ERP implemented port (first in India)

Administration of Cochin Port Trust


Cochin Port Trust is an Autonomous body under Government 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
Government of India may from time to time nominate the trustees in the Board
representing various interests interlinked with the port such as shipping agents,
shippers, labour, customers, state government etc.
The Board of Trustees is the apex decision making board. As per the provisions
of the major port trust act 1963, not less than two labourers respectively are
appointed as trustees of port trust board by the central government. These
trustees take active participation in all decision making processes especially in
matters concerning to the interest of the labours. In addition to this, unions are
taken into confidence while taking policy decisions affecting labour and
management. Chairman is assisted by the deputy chairman who in turn is
assisted by department heads and officials of the departments functioning in the
port.
Constitution of the Board of Trustees

27

Cochin Port Trust is an Autonomous body under Government 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 Board of Trustees consists of:

The Indian Navy


Customs
Cochin refinery
Indian Railways
Ministry of surface transport
Government of Kerala
Sea Food Industries
Ship Owners Association
Chamber of Commerce and Industries
Labour Representatives
Coast guard

The Board has a total strength of 19 members out of which 4 represent other
interests and 2 represent labour trustees.

Organisational Structure (Figure 3)

Board of Trustees
28

Chairman

Deputy
Chairman

Medical
Department

Civil Engineering
Department

Central
Accounts
Department

General
Administration
Department

Traffic
Department

Mechanical
Engineering
Department

Marine
Department

DEPARTMENTS
29

General Administration Department


The General administration department is headed by the secretary who is
assisted by 3 deputy secretaries (administration), deputy secretary (estate),
deputy secretary (establishment), deputy director (planning and research),law
officer, Industrial Relations officer, Chief Vigilance officer, public relations
officer, secretary officer and Hindi officer. The training s=cell under this
department is in charge of the training activities in the organisation. The
purpose of this department is to establish, document, implement, maintain. It
also aims to enhance customer satisfaction through effective application of
technical system, including the process of continuous improvement.
Functions:

Arrange manpower requirements


Labour welfare measures
Settlement of labour disputes
Appointments, promotions, transfers etc
Conveying meetings of the board of trustees and its sub committees
Preparation of agenda for the meetings and follow up actions taken for
the decisions taken
Public relations work
Managing ports land and allotment of quarters performing preventive
vigilance measures
Implementation of the official language
SERVICES:

Personal administration and grievances


Public relations work
Allotment of land
Issuance of annual pass for vehicles

The department has 5 sub-departments

30

1. Planning and research division: The main activity undertaken includes


preparation of annual plan and 5 year plan, projection of traffic through
statistical collection, analysis and interpretation of data related to
shipping and port operations.
2. Labour division: The main activity of this division is implementation of
various welfare measures for the benefit of labour and conveying meeting
with unions.
3. Estate divisions: All matters relating to the land, building and other
estates of the port are dealt with this department.
4. Vigilance: The function of this department is vigilance inquiry.
5. Central industrial security force: The force is entrusted with the safety
and security of vital installations of the port.
Central Accounts Department
To give financial advice on various matters of the administration of the
port.
Custodian and accounting of receipts and expenditure from the port fund
Compilation of budget estimates of financial statements
Pre-audit and checking of bills as an instrument of control
Financial and budgetary control
Payment of salary, pension and other dues to the employees
Accounting of expenditure on works
Issue of bills towards cost of service rendered by the port and recovery of
amounts due
Costing of service and operations to facilitate to cost control
Civil Engineering Department
Maintenance and development of general conservancy of the port from
the civil engineering point of view
Implementation of new scheme in consultation with the other department
for providing port facilities to cope with the needs of trade
Civil construction work and maintenance of the port structures
Sanitation of port area and water supply
Preparation of estimates of new work and award of contact for the new
contract work
Procurement and distribution of electricity
Beautification of port area
Dredging for the maintenance of navigational channels.
31

Mechanical Engineering Department


It is responsible for procurement, supply, maintenance and operation of
all cargo handling equipments and procurement and maintenance of
flotilla required by the port.
Maintenance of equipment and floating crafts.
Traffic Department

Allotment of berth
Deployment of equipment such as shore cranes, mobile cranes etc.
Deployment of labour gangs for loading and unloading operations
Transit management and supervision of the cargo handling
Cargo accounting and receipt and delivery
Allotment of the ware house and open stacking yards and monitoring
their utilizations.
Container freights station operation such as stuffing, de-stuffing,
movement of boxes and receipt and their deliveries.
Container terminal documentation, receipt and delivery of containers.
Marine Department
It is mainly maintains the marine conservancy of the port. The piloting of
the vessels in and out of the port, Hydro graphic survey, dredging
operations, fire services, licensing of harbour crafts, single station
including the operations and maintenance of the tanker terminals and of
electronic equipment like VHF, etc are the responsibilities of the marine
department.
Pollution control
All harbour flotilla like tugs, launches, dredgers are operated by the
marine department.

Medical Department
This department provide medical facilities for the officers and staff of the
port trust as well as their families.
32

Self-contained dispensary functioning at the port workshop and 6 first aid


boxes located at different operational areas of the port trust.
The port has a hospital with 150 beds and is also capable of providing
modern medical facilities to the patients.
Manages and runs a nursing college.

WORKING ENVIRONMENT AND OTHER WELFARE MEASURES


Management development programme: As part of the ports efforts on imparting
training to the port officers and staff, a number of officers and staff are deputed
for different training courses, seminars, conferences during the year.
Family security fund: Every year a certain sum is paid from the family security
fund on account of retirement, resignation and death.
Accident to shore workers: Compensation is paid to the workers as monitory
compensation injury leave, medical reimbursement.
Group insurance scheme: The amount is paid during the year to retired
employees/dependence of diseased employees.
EX-gratia relief: Every year certain amount is given towards the retired
employees/ dependence of deceased employees.
Scholarships: Every year certain amount is given towards merit cum means
scholarships to the children of port employees.
Co-operative society: There exists a fully fledged co-operative society for
fulfilling the extra needs of the employees like day to day commodities used in
the family.
Canteen: There exist a total of 15 canteens for the employees.
Schools: There are two nursery schools managed by the womens club and the
ladies club, one central school managed by central government and one school
managed by Kerala government in memory of Sir Robert Bristow.
Sports and games: The port had always taken interest to encourage sports in
the port campus.

33

Trade union: Port trust is having more than 5 trade unions. Most of themare
registered trade unions. The main trade unions are as follows:
1.
2.
3.
4.
5.

Cochin Port Staff Association (CPSA)


Cochin Port Employees Organisation (CPEO)
Cochin Port Wharf Staff Association
Cochin Port Employees Sangh
Cochin Thuramugha Thozhilaali Union

FACILITIES AT THE PORT


Berth
Berth is a specific location where a vessel may be berthed, usually for the
purpose of loading and unloading. The main inward shipping channel of the port
divides in to the Ernakulam and Mattanchery channels. The 1024 metre long
Ernakulam wharf has six alongside berths, out of which three are utilized as a
full-fledged container terminal, two for general cargo and a fertilizer berth.
Besides there are three oil berths in the Ernakulam channel. On the Mattanchery
channel there are four alongside berths, for general cargo, one Boat Train Pier
and two jetties for miscellaneous cargo.
APPROACH CHANNEL
Outer channel
Length: 10500 metres
Draft: 13.8 metres
Width: 17.5 metres
Inner channels
1. Ernakulam
Length: 5032 metres
Draft: 13.2 metres (up to RGCT and COT)
: 11 metres (at fertilizer berth)
: 10 metres (at Q5 to Q7 berths)
34

: 9.75 metres (at STB and NTB)


Width: 200 metres and turning basin of 500 metres
2. Mattachery Channel
Length: 2600 metres
Draft: 10.75 metres (up to south end of BTP)
: 9.75 metres
Width: 183 metres
Location of Fair Way Buoy
Latitude 09 - 57 -45
Longitude 76 -08 -59

BERTHING FACILITIES
Number of wharfs: 2
Length of Ernakulam wharf: 917 metres
Length of Mattanchery wharf: 670 metres
Number of alongside shaded berths: 7
Permissible draft: 9.14 metres at Q5, Q6, Q7, Q8 & Q9 in Ernakulam wharf
: 9.14 metres at Mattanchery wharf
Fertilizer Berth- completely dedicated to FACT: 1 (accommodates ships of
maximum 207 metres in length
drawing a draft of 10.7
metres and having displacement of maximum
25000 tonnes)
Coal Berth: 2
NCB: accommodates ships of maximum 170 metres
SCB: accommodates ships of maximum 170 metres
Draft: 9.14 metres
35

Boat Train Peer: 1


Length: accommodates ships of maximum 290 metres length
Draft: 10 metres
Tanker berth: 3
COT: accommodates ships of length 231 metres with a displacement tonnage
of 55000 loaded to 12.5 metres draft
NTB: accommodates ships of length 213 metres with a displacement tonnage
of 30000 loaded to 9.14 metres draft
STB: accommodates ships of length 266 metres with a displacement tonnage
of 15000 loaded to 9.14 metres draft
Cargo Storage and Container Freight Station Facility (Table 1)
Particulars
Total Sheds
Mattanchery wharf
13
Ernakulam
12
Container Freight Station 1
Open storage is also available

Area available
36690
23032
10000

PORT FLOTILLA
Tugs:
A tugboat (tug) is a boat that manoeuvres vessels by pushing or towing them.
Tugs move vessels that either should not move themselves, such as ships in
crowded harbour ora narrow canal, or those that cannot move themselves alone,
such as barges, disabled ships, or platforms . Normally two tugs are used for
each shipping movement as per the requirement of the Pilot and the cost of the
tug is included in the Pilotage charges.
Pilot Boat:
Pilot boat is a type of boat used to transport pilots between land and the inbound
or outbound ships that they are piloting.
Dredgers:

36

A dredger is a device for scraping or sucking the seabed, used for dredging. A
dredger is a ship or boat equipped with a dredge.
Floating Crane:
Floating crane are used mainly in bridge building and port construction, but
they are used for occasional loading and unloading of especially heavy or
awkward loads on and off ships.
Water Barge:
Water Barge is a flat bottom boat for carrying heavy loads especially on canals.
Flotilla at Cochin Port Trust (Table 2)
Tugs for shipping
Grab hopper dredger
Excavator
Dump hopper barge
Pilot launcher
Mooring launcher
Other tugs
Fire float
Floating crane
Water barge
Oil skimmer cum Buoy
Handling vessel

4
1
1
1
2
5
8
1
1
1
1
6

FACILITIES OFFERED BY PORT

Berths for handling cargo and passenger ships


Cargo handling equipments
Storage accommodation
Dry Dock
Bunkering facilities
Fisheries harbour
Medical and other welfare facilities for its employees

37

SERVICE PROFILE

Cargo handling
Pilotage
Dredging
Civil project works
Power (11 KVA line replaced by 110 KVA at the cost of 21 crore)
Fire freighting
Water supply
Land leasing

Goods Handled (Table 3)

DRY BULK
Fertilizer
Sulphur
Rock Phosphate
Coal
Zinc
Clinker
Wheat

BREAK BULK
Iron and steel
Food grains
Coffee
Marine Products
Cements
Sugar
Machinery
Raw cashew
Coal
Spices

LIQUID BULK
Crude
POL
Phosphoric Acid
Liquid Ammonia
Cashew shell
liquid
Palm Oil
Fatty Acids

CARGO HANDLING EQUIPMENTS

Ship to shore container gantry cranes


Transfer cranes
Reach stackers
Mobile cranes
Pork lift trucks
38

Heavy duty top lift trucks


Trailer chassis
Heavy duty tractors
Spreaders

IMPORT AND EXPORT PROCEDURE


General procedure for export

39

Exporters/CHA requests the traffic manager for moving the cargo into the
port and based on the permission given the cargo is moved into the port with
cast chit

Exporters/CHA submits shipping bell with customs along with supporting


documents like packing list, letters of credit etc

After passing the shipping bill by the customs export department, goods are
presented for examination and appraisal

Customs give pass order for loading of the cargo

CHA files export application along with invoice, packing test etc

The CHA submits the export application along with allowed for shipment by
customs to the port. The documents are compared and note cessed

The steamer agent fills the vessel arrival intimation, drop prior to the
expected arrival of the vessel

The port allocates the birth and vessel is berthed

Steamer agent files for entry outward

The vessel related charges are paid in advance by steamer agent

40

Customs officers verify the contents/cargo and permit clearance by giving let
export and customs passed shipping bill

Stevedore indents for labour and equipment

Cargo is loaded with proper tally and mates receipt is received. The
consolidated cargo exported by the vessel is filed as EGM with customs

After loading the vessel sails out and the regularisation of the charges are
done and settled

General procedure for import

The SA files the vessel arrival intimation 7 days prior to the expected arrival
of the vessel
41

The steamer agent files IGM manually or electronically

The SA pays the vessel related charges in advance

The port allocates the berth and the vessel is berthed

Customs, PHO, plant quarantine, immigration etc officials board the vessel
and entry onward is granted

Port/terminal operator commences the cargo operations

Stevedore indents for labour equipment

Unload of cargo applications starts with tally

Cargo is stacked at the proper places

After the completion of the landing operations the vessels sails out and the
charges are regularised

Bill of lading is submitted to the Steamer agent and delivery order is


obtained and based on the delivery order, Bill of entry is filed by the
CHA/importer

BE is cross checked with IGM and tallied


42

BE is sent examination and assessment.

Selected packages are opened and customs examines the cargo. Value is
assessed and payable duty is arrived at

Duty is paid by the importer or CHA

CHA files import application along with the delivery order. Port cargo
related charges are paid. IA is verified with IGM

On obtaining the out of charges from the customs the CHA approaches the
port for delivering of cargo with BE and IA

The documents are cross-verified while ticket is issued and delivery is


affected. The delivered goods pass the port gate examination document of
the gate

MAJOR PARTIES INVOLVED IN THE IMPORT AND EXPORT OF


GOODS IN THE PORT
EXPORTER
A person who transports goods abroad, especially for trade or sale is called
an exporter.
IMPORTER
43

A person who brings in goods from an outside country for the purpose of
trade or sale is called an importer.
CUSTOMS
Assessment and collection of customs duties on import and export
charges as per customs taxes (customs act, 1962 and customs tariff
act, 1975).
Enforcement of the various provisions of the customs act
processing imports and export of cargo, baggage, postal articles,
and arrival and departure of vessels etc.
Discharge of various agency functions and enforcing various
prohibitions and restrictions on imports and export under customs
act and other allied enactments.
Responsible for the prevention of smuggling including, interdiction
of drug trafficking, and international passenger processing.
PORT TRUSTS
Provides infrastructure facilities like berths, equipment, storage
space, navigation channels and road and rail network within port
area.
Perform vessel operation like berthing/ un -berthing of vessels,
containers, cargo handling operations, movement to storage yard,
stuffing and de-stuffing, examination of containers to CFS
Delivery/ aggregation of containers/ cargo, manpower and
equipments

PORT HEALTH ORGANISATION


Inspection of hygiene in the ship and amongst crew, so as to
control the spread of infectious diseases from incoming vessels
Inspecting food and agricultural products entering the port
Edible oil are inspected by the PHO and permitted for domestic use
based on lab certification.
Checking the hygiene in and around the port areas
Providing immunisation
44

PLANT QUARANTINE ORGANISATION


To prevent the entry, establishment and spread of exotic pests in India
as per the provisions of the Destructive Insects and Pests Act, 1914.
Responsible for supervising the fumigation of cargo (timber, food
grains)
IMMIGRATION AUTHORITIES
The agency that is responsible for applying the immigration laws of the country
and providing the needed documents for foreign crew and passengers to
disembark and embark
TERMINAL OPERATOR
Manages operations both at wharf and yard
Acts as the custodian of cargo
Functions of terminal operator are common to that of the port trusts
VESSEL OPERATING AGENTS (STAEMER AGENTS/ MAINLINE
OPERATOR AGENTS)
The authorised representative in a specified territory acting on behalf
of a steamer ship and attending to all matters relating to the vessels
owned by his principal
The SA aliases with the port and other agencies like customs for the
completion of formalities related to the various agencies
They compile the vessel plan and coordinates with the stevedore and
port for loading and discharge operations

CONTAINER OPERATING AGENT (NVOCC/ VOCC)


They represent the container liner and provide the SA with the details
of the container belonging to them in the vessel
They also give the delivery order to the clearing agent/ importer for
clearing the container
The liner gives the authorisation for loading container to a vessel to
the CA

45

They recover terminal handling charges and container detention


charges and also issues Bill of leading and agents delivery order to
the consignees
(NVOCC Non vessel operating common carrier)
(VOCC Vessel operating common carriers)
STEVEDORE
Stevedoring agents manages loading and unloading ship.
CUSTOMS HOUSE AGENTS
Importer/ exporter are the owners of the goods being imported/
exported and they are mainly responsible for completion of customs
and port formalities either themselves or through a CHA
CHA is any person engaged in providing any service, either directly or
indirectly, connected with the C&F operation.
CHA are licensed to enter the customs premises and clear the goods
through customs/ port after payment of all duties and port charges on
behalf of the importer
CHA brings in the export cargo and complete all documentation for
loading on behalf of the exporter
TRANSPORT OPERATORS
1. Road
2. Rail (CONCOR)
3. Indian Railways

CONTAINER FREIGHT STATIONS (CFS)/ INLAND CONTAINER


DEPOTS

Receipt and despatch/ delivery of cargo


Stuffing of containers
Transit operation by rail/ road to and from servicing parts
Customs clearance
Temporary storage of cargo and containers
Maintenance and repair of container units
46

ONGOING AND UPCOMING PROJECTS AT COCHIN PORT TRUST


ONGOING PROJECTS
Cochin LNG Terminal
M/s Petronet LNG Ltd. has set up an LNG Terminal and Re-gasification Plant
in Puthuvypeen at Cochin Port. The facility has a capacity of 5 MMTPA. The
Terminal can berth LNG vessels up to 2,16,000 m3 with a length of 300 m and a
draft of 12.0 m. The facility is expected to take its first consignment by July
2013.
International Ship Repair Facility

47

Cochin Port Trust has awarded a project for development of an International


Ship Repair Facility to the Cochin Shipyard Ltd. (CSL) on 19-9-2012. The
facility is to come up on 41 acres of land on the Western side of Willingdon
Island along the Mattancherry channel. CSL is investing around Rs. 490 crores
in the venture. The existing ship repair facilities of the Port including the dry
dock (66 m x 12.5 m x 4 m), slipway and workshop complex are being taken
over by CSL. The facilities will enable ships visiting Cochin Port to undertake
both floating as well as docking repairs.
Development of a Multi-User Liquid Terminal (MULT) at Puthuvypeen
SEZ (International Bunkering Terminal)
Cochin Port Trust has awarded the construction of an Oil-cum-LPG Jetty at
Puthuvypeen in March 2013. The project is scheduled for commissioning by
end December 2015. The project has a total capacity of 4.10 MMTPA, with
LPG forming 0.68 MMTPA and bunkers/POL products being 3.42 MMTPA.
The terminal is designed as a Multi-User Liquid Terminal. IOCL will have use
of the terminal for 161 days in a year, while other operators can use it for the
balance 204 days. This jetty will service IOCLs LPG storage facility in
Puthuvypeen, and in the process, reduce road transport of LPG from Mangalore
through Kerala. The jetty will also serve as an International Bunkering Terminal
for supplying bunkers to vessels calling at the Port as well as plying in the high
seas.

UPCOMING PROJECTS

Redevelopment of Q1-Q3 Berth


Cochin Port Trust intends to award on PPP basis in six months time a project for
the redevelopment of Q1-Q3 berth on Mattancherry Wharf on the western side
of Willingdon Island along the Mattancherry Channel. The quay length is
around 400 m. The berths will be ideal for import/export of moderate parcels of
bulk and break bulk cargoes. Containers, coal and finished fertilizers cannot be
handled until the exclusivity period benefit conferred on other terminal
operators in Cochin Port is exhausted. Non-containerised traditional cargoes
48

like food grains, raw cashew, building materials, gypsum, industrial sugar, salt,
and timber logs have been handled by this berth at various times. RO-RO car
carriers are seriously considering using Mattancherry Wharf for coastal
movement from Gujarat and Chennai.
Modernisation of Coal Handling In Cochin Port
Cochin Port has been handling coal since its inception at the North Coal Berth
and South Coal berth on the Mattancherry Wharf. The report on the Master
Plan for Redeveloping Willingdon Island has highlighted the great potential for
coal handling in Cochin Port, especially in view of the fact that it is the major
port lying nearest to the route to African coal.
Cochin Outer Harbour Project
Cochin Port experiences movement of substantial quantity of sand from north to
south at its mouth due to the littoral drift phenomenon. Consequently, about 300
hectares of land has been accreted off Puthuvypeen along the west coast while
the shoreline further south has been eroded over the years. Conceptual studies
through IIT, Madras and CWPRS, Pune show that the intensity of the sea
erosion experienced on the western coast of Cochin can be reduced if two
breakwaters, each extending 6km into the sea, are put up at the mouth of the
Port. The studies suggest that an associated benefit of the breakwaters could be
a significant reduction in maintenance dredging loads.
Free Trade Warehousing Zone (FTWZ)
India has emerged as one of the fastest growing economies in the world. The
Government of India announced Free Trade and Warehousing Zones (FTWZ) to
create trade-related infrastructure to bridge the gap in the existing facilities
available for trading and storage activities for foreign trade with freedom to
carry out trade in free currency. The key benefits of an FTWZ are duty
deferment, local tax exemption, service tax exemption on all activities within
the FTWZ, income tax exemption for developers and users of the FTWZ, reexport without duty payment, excise duty exemption for products sourced from
Domestic Traffic Area (DTA), shared warehousing and equipment thereby
reducing the capital expense requirement, faster Customs clearance and
improved logistics connectivity leading to reduced delivery time.

49

SWOT Analysis (Table 4)


STRENGTHS
Closest Indian Port on the
International sea route
A natural weather port
Single window facility for
customs, immigration and health

WEAKNESS
Old Infrastructure
Limited water depth and high
dredging cost
Old and inefficient cargo
handling systems
50

clearance and hence reducing


the overall time of operations
Indias first E-Port and ISO
9001-2008 certified port
24 hour pilotage
Round the clock navigation
Linked to main centres of
country by rail, road and air
Free of congestion
0% pilferage
Highly experienced staff

OPPURTUNITIES

Poor hinterland connectivity


High Tariffs
Overstaffing
High operating and handling
cost

THREAT

Huge Indian Markets


Invest in infrastructure, lower
cost for port users
Invest in improving transport
facilities
Encouraging for private
participation and joint venture
prospects
An increase in the foreign
vessels entering the port trust
and thus boosting the economy
Huge scope for development at
Cochin Port Trust as most the
space is underutilised.

Emergence of minor ports


Emergence of private ports
Lack of industrial base in Kerala
Labour unions influence on the
workers
Poorly maintained roads in
Kerala
Growth and stiff competition
from the neighbouring ports like
V. O. Chidambaranar and New
Mangalore ports

TRAFFIC AT COCHIN PORT TRUST


The total traffic handled by the Port during year recorded a decrease of
2.19% to 196.5 lakh tonnes as against 200.91 lakh tonnes handled in the
preceding year. The increase in the traffic was mainly recorded in Liquid
51

Bulk compared to the preceding year as may be seen from the following
statement.
Traffic handled by Port during the past three years (Table 5)

2012-13
QUANTIT
Y

% to
Total

(In Lakh Tonnes)

2011-12
QUANTIT
Y

% to
Total

2010-11
QUANTIT
Y

% to
Total

A. BULK CARGO

1) Liquid Cargo
2) Dry Bulk
a)Fertilizers & its raw
materials
b) Food Grains (Wheat)
c) Coal & Zinc
Concentrate
d) Salt
e) Others
TOTAL
B. BREAK BULK
CARGO
C. CONTAINERISED
CARGO
GRAND TOTAL

141.98

72.60

142.39

70.87

124.81

69.83

3.94

2.025

4.30

2.14

4.29

2.40

0.069
1.10

0.045
0.55

0
0.83

0.00
0.41

0
1.17

0.00
0.65

0.646
.8538

0.328
0.434

1.37
3.77

0.68
1.88

0.63
2.89

0.35
1.62

149.20
1.23

75.97
2
0.625

152.66

75.98

133.79

74.86

1.10

0.55

0.75

0.42

46.07

23.41

47.15

23.47

44.19

24.72

196.5

100.0
0

200.91

100.0
0

178.73

100.0
0

Distribution of Cargo Traffic during the Past 6 Years (Table 6)

52

(In 000 tonnes)


SI. No

CATEGO
RY
BREAK BULK
1
Soda Ash
2
Oil Cake
3
Timber
Logs
4
Others

200708

200809

200910

201011

201112

201213

41
6
34

44
12
51

12
7
77

6
0
61

0
0
64

6.130
0
94.792

58

31

29

46

.289

Total

139

138

125

74

110

101.2
11

182

126

55

158

145

182.96
3

89

139

156

194

171

58

60

76

77

49

148.14
1
82.301

246
56

259
123

148
52

40
76

34
59

28
22

104

91

82

27

27

28.6

120

281

401

326

542

8.538

Total

855

1079

970

898

1027

500.5
43

LIQUID BULK
12
POL
13
OTHERS

11300
278

10492
264

11957
449

12101
380

14010
229

13895
303.20
3

TOTAL

11578

10756

12406

12481

14239

14198

GRAND TOTAL

12572

11973

13501

13453

15376

14800

DRY BULK
5
Rock
phosphat
e
6
Sulphur
7

8
9
10
11

Zinc
Concentr
ate
Coal
Murate of
Potash
Shredded
Scrap
Others

53

GRAPH DEPICTING YEARLY VARIATION IN TRAFFIC (Figure 4)


25,000,000

20,000,000

20088427

15780086

15,000,000

14468700
13833231
12784175
12264069
11783372
Import

10,000,000

Export

5,000,000
3474196
3490481

4310905
3596127
3404050
2709952
3190016

54

Figure 5

55

TYPE OF CARGO

24%

Liquid cargo
Dry Bulk cargo
Break Bulk cargo

1%

Containerised cargo

3%

72%

56

During the year foreign cargo traffic decreased by 1.52% to 132.27 lakh
tonnes from 134.31 lakh tonnes in the preceding year. Coastal cargo traffic
has also decreased by 0.64% to 66.17 lakh tonnes from 66.60 lakh tonnes.

The details of coastal and foreign trade handled during the past 3 years (Table 7)

(In Lakh Tonnes)


Export

Traffic 2012
-13

2011- 2010
12
-11

Import

Total

201213

201112

201011

201213

201112

201011

Coastal 13.97 14.86 12.04 52.20

51.74

48.22

66.17

66.60

60.26

Foreig
n

24.26 28.25 22.00 108.0


1

106.0
6

96.47

132.2
7

134.3
1

118.47

Total

38.23 43.11 34.04 160.2


1

157.8
0

144.6
9

198.4
4

200.9
1

178.7
3

57

Figure: 6

58

Percentage Composition of Traffic During


2012-13

7%
12%

Foreign Import
Coastal Import
Foreign Export
Coastal Export
55%

26%

59

IMPORTS
Total import traffic handled during the year recorded an increase by 9.06% to
157.80 lakh tonnes from 144.69 lakh tonnes in the preceding year.

Commodity wise imports during the past 3 years (Table 8)

(In Tonnes)
2012-13

2011-12

2010-11

Commodity

Quantity

% to
Total

11741489

58.44

POL
3944304

20088427

11554895

73.22

10366236

71.86

430797

2.73

428665

2.97

34000

0.22

40000

0.28

2859977

18.12

2751432

19.02

900417

5.71

882368

6.10

15780086

100.00

14468701

100.00

7.533

Other Cargo
Total

% to Total

14.24

Containers
1513414

Quantity

0.157

Coal
2861220

% to
Total

19.63

Fertilizers &
Raw
Materials
28000

Quantity

100.0
0

60

EXPORTS
Total export traffic handled during the year showed a decrease of 26% to
31.90 Lakh tonnes from 43.10 Lakh tonnes in the preceding year.
Commodity wise exports handled during the past 3 years

(Table 9)

(In Lakh Tonnes)


Commodity

2012-13

Quantit
y

1. POL

% to
Total

2011-12

Quantit
y

% to
Total

2010-11

Quantit
y

% to
Total

2154172

67.5
2

2455158

56.95

1734664

50.96

Tea

94165

2.95

111137

2.58

111366

3.27

Cashew Kernals

67067

2.11

71187

1.65

64298

1.89

Sea Foods

210986

6.61

207107

4.80

169408

4.98

Coir Products

140882

4.41

122521

2.84

131046

Rubber & Rubber


Products
Spices

105289

3.31

79357

1.84

102769

3.02

2.77

86772

2.01

66855

1.96

115359

2.68

84792

2.49

1061423

24.62

937021

27.53

2. Containers

88148

Coffee

80674

2.53

Others

248653

7.79

61

3.85

TOTAL

3190016

100

4310905

100.0
0

3404050

Category wise Distribution of Vessels entered the Port during the past 6 Years
10)
NUMBER OF VESSELS CARRYING
Year

Container
s

Coal

200607
200708
200809
200910
201011
201112
201213

382

Total

(Table
NRT

Food
grains

Genera
l cargo

Tankers

Others

Fertilize
r & raw
material
s
27

92

382

278

1173

9,571,341

350

15

73

352

323

1121

11,009,143

334

22

63

305

352

1082

11,110,174

390

17

45

381

440

1278

10,546,078

360

18

39

372

465

1256

10,758,101

390

15

37

361

581

1386

12,219,423

439

12

35

354

527

1368

13,61,4980

62

100.0
0

THE NET REGISTERED TONNAGE OF SHIPS ENETRED THE


PORT DURING THE PAST 6 YEARS (Figure 7)

63

16000000

14000000

13614980

12219423
12000000
11009143 11110174
10546078
10000000

10758101

9571341

8000000

NR

6000000

4000000

2000000

0
2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

THE NUMBER OF SHIPS ENTERED IN THE PORT TRUST IN


THE PAST 6 YEARS (Figure 8)

64

Number of Ships
2012-13

1368

2011-12

1386

2010-11

1256
Number of Ships

2009-10

1278

2008-09

1082

2007-08

1121

2006-07

1173

200

400

600

800

1000

1200

1400

1600

BREAK BULK CARGO OPERATION

65

Until the mid-1960s most general cargo (called break-bulk cargo) travelled
loose and each item had to be packed in the hold of a cargo liner using
dunnage (pieces of wood or burlap) to keep it in place. This labourintensive operation was slow, expensive, and difficult to plan and the cargo
was exposed to the risk of damage or pilferage. As a result cargo liners spent
two- thirds of their time in port and cargo-handling costs escalated to more
than one-quarter of the total shipping cost, making it difficult for liner
operators to provide the service at an economic cost, and their profit margins
were squeezed.
The shipping industrys response was to unitize the transport system,
applying the same technology which had been applied successfully on the
production lines in manufacturing industry. Work was standardized, allowing
investment to increase productivity. Since cargo handling was the main
bottleneck, the key was to pack the cargo into internationally accepted
standard units which could be handled quickly and cheaply with specially
designed equipment. At the outset many systems of unitization were
examined, but the two main contenders were pallets and containers. Pallets
are flat trays, suitable for handling by fork-lift truck, on which single or
multiple units can be packed for easy handling. Containers are standard
boxes into which individual items are packed. The first deep-sea container
service was introduced in 1966 and in the next 20 years containers came to
dominate the transport of general cargo, with shipments of over 50 million
units per year.
The facilities provided in a port depend on the type and volume of cargo
which is in transit. As trade changes, so do the ports.
At Cochin port trust, Break bulk cargo constitute mainly 6 products, they are
as follows:

Timber logs
Iron and steel
Pipes
Cement in Bulk Bags
Defence Cargo
Project cargo

The cargo operation of break bulk is mainly affected by the following


factors:
66

Tariff Charges
Availability of the Equipments
The efficiency of the available equipments
The efficiency of the employees
Delay in customs clearance
Availability and condition of storage facility
Weather problems
Employees issues (e.g.: trade unions, strike)
Transportation (Availability of trucks and other vehicles for
transporting the cargo to the destined places at the right time)

The overall efficiency of the Break Bulk cargo is affected by the above
factors and the problems which are seen in the Break Bulk cargo operation
are seen in and around the above mentioned factors.
DISTRIBUTION OF BREAK BULK CARGO IN 2012-13 (Table 11)
Commodit
y
Timber
logs
Iron &
steel
Cement
Defence
cargo
Project
cargo
Others
Total

Export
Coasta Foreig
l
n
0
0

Total Coasta
l
0
0

Import
Foreig Total
n
94792 94792

Grand
total
94792

1462

1462 12915

12915

14377

0
0

0
0

0
0

11218
0

0
2212

11218
2212

11218
2212

403

318

721

721

0
0

289
1751

289 0
1751 24536

0
97322

0
12185
8

289
123609

67

DATA ANALYSIS AND INTERPRETATION ON THE BASIS OF THE


QUESTIONAIRE
Kindly rate the following questions on a scale of 1 to 5.
(Strongly disagree is assigned a value of 1, partially disagree is assigned a
value of 2, neutral opinion is assigned a value of 3, partially agree is
assigned a value of 4 and strongly agree is assigned a value of 5.)
There were a total of five respondents from which data was collected for the
purpose this study.

1. Do you feel that the tariff charge at Cochin Port Trust is affecting Break
Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on Tariff charges (Table 12)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

Grand Total

Percentage
to Total

100

68

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING TARIFF CHARGE AS THE MAIN HINDRANCE TO
BREAK BULK CARGO OPERATION (Figure 9)

TARIFF CHARGES
6
5
4
3
2

TARIFF CHARGES

1
0

INTERPRETATION
From the data above obtained from the respondents based on the survey,
100% respondents do feel that tariff charges at Cochin Port Trust are high as
compared to its neighbouring ports.

69

2. Do you feel that the availability of Equipments at Cochin Port Trust is


affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on the availability of Equipments


(Table 13)
Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

3
4

Grand Total

Percentage
to Total

40

20

40

70

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING AVAILABILITY OF EQUIPMENTS AS THE MAIN
HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 10)

AVAILABILITY OF EQUIPMENTS
3.5
3
2.5
2
1.5

AVAILABILITY OF
EQUIPMENTS

1
0.5
0

INTERPRETATION

71

From the above table, around 40% of the respondent had a neutral opinion,
20% partially disagreed and 40% strongly disagreed regarding the
availability of Equipments at Cochin Port Trust.

3. Do you feel that the efficiency of the available Equipments at Cochin Port
Trust is affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on efficiency of available equipments


(Table 14)
Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

3
4

Grand Total

Percentage
to Total

40

40

20

0
0

72

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING EFFICIENCY OF THE AVAILABLE EQUIPMENTS
AS THE MAIN HINDRANCE TO BREAK BULK CARGO
OPERATION (Figure 11)

EFFICIENCY OF AVAILABLE EQUIPMENTS


4.5
4
3.5
3
2.5
2

EFFICIENCY OF AVAILABLE
EQUIPMENTS

1.5
1
0.5
0

INTERPRETATION
Around 40% of the respondent has neutral opinion, 40% partially disagreed
and 20% partially agreed that the efficiency of the available equipments
were affecting the cargo operations at Cochin Port Trust.
73

4. Do you feel that the transportation facility at Cochin Port Trust is affecting
Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on the transportation facility (Table 15)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Strongly
Agree

1
2

Partially
Agree

3
4

Grand Total

Percentage
to Total

20

40

20

20

100

74

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING TRANSPORTATION FACILITIES AS THE MAIN
HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 12)

TRANSPORTATION FACILITIES
4.5
4
3.5
3
2.5
2

TRANSPORTATION
FACILITIES

1.5
1
0.5
0

INTERPRETATION
From the above data 20% strongly disagree, 40% partially disagree, 20%
had a neutral opinion, and 10% partially agree when considering the factor
75

of transportation facility as the main hindrance for the cargo operation at


Cochin Port Trust.

5. Do you feel that the efficiency of the workers at Cochin Port Trust is
affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on efficiency of workers (Table 16)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

5
Grand Total

Percentage
to Total

20

40

40

0
0

76

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING EFFICIENCY OF THE WORKERS AS THE MAIN
HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 13)

EFFICIENCY OF THE WORKERS


4.5
4
3.5
3
2.5
2

EFFICIENCY OF THE
WORKERS

1.5
1
0.5
0

INTERPRETATION
From the above table 40% of the respondents partially agreed, 40% had a
neutral opinion and 20% partially disagreed when considering the efficiency
of the workers as a hindrance for the cargo operations.
77

6. Do you feel that the delay in customer clearance at Cochin Port Trust is
affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on delay in customs clearance (Table 17)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

5
Grand Total

Percentage
to Total

20

80

78

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING CUSTOMS CLEARANCE DELAY AS THE MAIN
HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 14)

CUSTOMS CLEARANCE DELAY


2.5

1.5

CUSTOMS CLEARANCE
DELAY

0.5

INTERPRETATION
From the above table 80% of the respondents partially disagreed and 20%
strongly disagreed when considering the delay in customs clearance as a
hindrance for the cargo operations at Cochin Port Trust.

79

7. Do you feel that the employee issues at Cochin Port Trust are affecting
Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on employee issues (Table 18)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

1
2

5
Grand Total

Percentage
to Total

60

40

80

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING EMPLOYEE ISSUES AS THE MAIN HINDRANCE
TO BREAK BULK CARGO OPERATION (Figure 15)

EMPLOYEE ISSUES
2.5

1.5

EMPLOYEE ISSUES

0.5

INTERPRETATION
From the above table around 60% strongly disagreed and 40% partially
disagreed when considering employee issues at present as a hindrance to the
cargo operation.

81

8. Do you feel that the weather problems at Cochin Port Trust are affecting
Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

Data of the respondents based on weather problems (Table 19)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

2
3

5
Grand Total

Percentage
to Total

20

60

20

0
0

82

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING WEATHER PROBLEMS AS THE MAIN
HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 16)

WEATHER PROBLEMS
4.5
4
3.5
3
2.5
2

WEATHER PROBLEMS

1.5
1
0.5
0

INTERPRETATION
From the above table around 60% of the respondents had a neutral opinion,
20% partially disagreed and 20% partially agreed when taking weather
conditions as a hindrance in the cargo operations.

83

9. Do you feel that the storage facilities at Cochin Port Trust are affecting
Break Bulk Cargo Operations?

Data of the respondents based on Storage facility (Table 20)


Respondents

Strongly
Disagree

Partially
Disagree

Neutral

Partially
Agree

Strongly
Agree

3
4

Grand Total

Percentage
to Total

20

40

40

84

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN


CONSIDERING STORAGE FACILITIES AS THE MAIN
HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 17)

STORAGE FACILITIES
3.5
3
2.5
2
1.5

STORAGE FACILITIES

1
0.5
0

INTERPRETATION
From the above table around 80% had a neutral opinion and 20% partially
disagreed while considering storage facilities as a hindrance in the cargo
operations.

85

FINDINGS AND SUGGESTIONS


The main problems faced during the Break bulk cargo operation area are as
follows:

Tariff charges
Availability of equipments
Inefficiency of available equipments
Lack of storage facility
Inefficiency of the workers
Employee and union problems
Weather problems
Transportation facilities

DATA COLLECTED ON THE BASIS OF QUESTIONAIRE (Table 21)


Tariff
charge
s

Availability
of
equipments

Efficiency
of the
available
Equipment
s

Efficienc
y of the
workers

Transportation
facilities

Customs
clearanc
e delay

Employe
e issues

Weather
problems

Storage
facilities

2.8

3.2

2.4

1.8

2.8

Respondent

Average

86

GRAPH SHOWING THE DIFFERENT PROBLEMS MENTIONED ON


THE BASIS OF THE DATA COLLECTED FROM THE
QUESTIONAIRE (Figure 18)

Different problems
6
5
4
3
2
1
0

Series 1

Each and every problem mentioned above may cause hindrance to the future
business at Cochin Port Trust.
One of the major issues among the problem interpreted from the survey
conducted was identified to be the High Tariff Charges at Cochin Port Trust.
The importers, exporters and the steamer agents may find it difficult to continue
business with Cochin Port Trust if the high Tariff charge prevails.

87

Comparison of Tariff Charge between Cochin Port Trust and V. O.


Chidambaranar Port Trust
In order to get a clear view of the major problem i.e. Tariff charge, a small
comparison was done with the tariff charges at Cochin Port Trust and V. O.
Chidambaranar Port Trust.
To compare the tariff, three charges were taken and compared, they were
Vessel related charges
Pilot charges
Berth Hire charges

DATA SHOWING VESSEL RELATED CHARGES AT COCHIN PORT


TRUST AND V. O. CHIDAMBARANAR PORT TRUST (Table 22)

Name of the Port

Type of
vessel

Cochin Port Trust


V. O. Chidambaranar

Break Bulk
Break Bulk

Rate per GRT


Coasta Foreign
l
(In US $)
(In Rs)
7.69
0.287
5.25
0.2014

% increase at
Cochin port trust
Coasta Foreign
l
46%
34.11

DATA SHOWING PILOTAGE CHARGES AT COCHIN PORT TRUST


AND V. O. CHIDAMBARANAR PORT TRUST (Table 23)

Name of the Port

Vessel size
(In GRT)

Cochin Port Trust


V. O. Chidambaranar

Up to 30000
Up to 30000

Rate per GRT


Coasta Foreign
l
(In US $)
(In Rs)
21.49
0.8033
8.16
0.3232

% increase at
Cochin port trust
Coasta Foreign
l
163.35 148.66

88

DATA SHOWING BERTH HIRE CHARGES AT COCHIN PORT TRUST


AND V. O. CHIDAMBARANAR PORT TRUST (Table 24)
Name of the Port

Cochin Port Trust


V. O. Chidambaranar

Vessel size
(In GRT)

Up to 15000
Up to 15000

Rate per GRT at


general cargo berth
Coasta Foreign
l
(In US $)
(In Rs)
0.2026 0.00757
0.065
0.0025

% increase at
Cochin port trust
Coasta
l
211.6

Foreign
202.8

89

Findings
From the above three tables we can see that the vessel related charges at
Cochin port were 46% and 34.11% more than that at V. O.
Chidambaranar Port Trust for coastal and foreign vessels respectively.
Pilot charges for vessels up to 30000 GRT at Cochin Port Trust was
163.35% and 148.66% more than that at V. O. Chidambaranar Port Trust
for coastal and foreign vessels respectively.
Berth hire charges for vessels up to 15000 GRT at Cochin Port Trust was
211.6% and 202.8% more than that at V. O. Chidambaranar Port Trust
for coastal and foreign vessels respectively.
The employee issues like strike have come down drastically in the last
couple of years. Cochin port employees in the past 2 years have never
conducted a strike. This is an added advantage and sends a good message
to the outside world.
Another problem that Cochin Port Trust faces is the lack of Industrial
base in Kerala. Unlike states like Gujarat, Bihar and some northern states
Kerala lack Industries. This can also be sighted as a hindrance for the
cargo business at Cochin Port Trust.
Cargo operations are affected between the month of June and September
due to the bad weather condition (Monsoon season).
Lack of adequate storage facility and the substandard condition of the
storage facility do have an impact on the break bulk cargo operation,
since the cargo may be stored before dispatch.
The inefficiency and shortage of the available machines at Cochin Port
trust also have a negative impact on the Break Bulk cargo operations.
The road conditions connecting to Cochin Port is of low standard creating
problems in smooth transportation.

90

Suggestions
Tariff charges could be revised to attract more customers in the future.
The existing storage facilities should be maintained in a good standard
and new storage facilities should be developed if the need arises.
The equipments at the Cochin Port Trust Should be maintained and
checked for malfunctions in a routine manner.
Transportation facilities should be adequately arranged so that the
customers dont face any problem with the dispatch and delivery of cargo
to their respective destinations on time.
The labours productivity should be monitored periodically.
The infrastructure potential of Cochin Port Trust should be utilised to the
maximum extent possible.
Efforts can be put to strengthen the marketing of Cochin Port Trust to
reach more potential customers.

91

CONCLUSION
Break bulk cargo is a type of cargo which requires a lot manpower and
machinery for its movement. During the study at Cochin Port Trust, I was able
to understand the cargo traffic and cargo operation of Break bulk cargo. Cochin
Port Trust has good opportunities in the future if the infrastructure is developed
and the available facilities are utilised to the best extent possible.
It has been a good experience to do a research oriented project in a highly
reputed organisation like Cochin Port Trust. I was able to understand the
functioning of different departments at Cochin Port Trust and was able to
understand the break bulk cargo operations along with its problems. Findings
and suggestions were also given for improving the Break Bulk Cargo operations
during my research study at Cochin Port Trust.

92

REFERENCES

http://www.cochinport.com/
http://www.vocport.gov.in/Default.aspx
ipa.nic.in/Definitief Volume 1.pdf
http://echoofindia.com/new-delhi-indias-exports-likely-grow-10-28137
http://www.cochinport.com/index.php?
opt=projects&sub=20&id=3&tab=1
http://en.wikipedia.org/wiki/Cochin_Port_Trust
Cochin Port Trust Administration Report
www.tariffauthority.gov.in/

Questionnaire used for the study


93

1 .Name of the company:

2. Do you feel that the tariff charge at Cochin Port Trust is affecting Break Bulk
Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

3. Do you feel that the availability of Equipments at Cochin Port Trust is


affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

4. Do you feel that the efficiency of the available Equipments at Cochin Port
Trust is affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

5. Do you feel that the efficiency of the workers at Cochin Port Trust is
affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

94

6. Do you feel that the transportation facility at Cochin Port Trust is affecting
Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

7. Do you feel that the delay in customer clearance at Cochin Port Trust is
affecting Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

8. Do you feel that the employee issues at Cochin Port Trust are affecting Break
Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

9. Do you feel that the weather problems at Cochin Port Trust are affecting
Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

10. Do you feel that the storage facilities at Cochin Port Trust are affecting
Break Bulk Cargo Operations?
Strongly Disagree

Partially Disagree

Partially agree

Strongly Agree

Neutral

95

10. Suggestions if any in the services offered by Cochin Port Trust?

Thank You

96

Potrebbero piacerti anche