Pillais Institute of Management Studies and Research

Report on visit to JNPT port.

Rohit Jadhav
2/25/2012 Report on visit to Jawaharlal Nehru Port Trust (JNPT)
The day started with gathering near the college gate where attendance of the visitors was accounted by the faculty. We left the college by bus at around 9:00am to move towards JNPT. At around 10:15am we reached at Continental Warehousing Corporation Pvt. Ltd., a CFS (Container Freight Station) near Uran. Here we were been addressed about the company, their role in port operations their need in the business, their day today work and how they compete in this business by their official. Also all the questions asked by the students were answered by the officer. Continental Warehousing Corporation Pvt. Ltd. is a private organisation started in January 2006 at JNPT. The company has made its presence near three ports which includes Chennai Port, Tuticorin and JNPT port. With just 12km away from the port it offers maximum convenience for liners and service providers. Details about the company: FACILITIES - Continental Warehousing Corporation Pvt. Ltd. CFS IN NAVI MUMBAI, URAN TOTAL AREA 36 acres (excluding additional area of 8 acres expected to be notified by customs shortly) Empty Containers Storage Yard - 12 acres - for parking Empty Containers, with round-the-clock repair facility Truck Parking Area WAREHOUSES Covered Warehouses Bonded - 1,20,000 sq. ft. (out of which one bonded warehouse is been leased by Schneider Electric) Exports - 1,15,000 sq. ft. Imports / LCL - 1,40,000 sq. ft. Additional Warehouse - of 100,000 sq. ft. (proposed) CONTAINER HANDLING CAPACITY Container handling Capacity of 1.5 lac TEUs p.a. Reefer Containers 1000 TEUs p.a. HANDLING EQUIPMENT Owned imported reach stackers Equipped to handle all types of ODC cargo Weigh Bridge facility 200 trailers for container movement Chassis stuffing and de stuffing Heavy duty and high reach forklifts Mobile and Hydra cranes SECURITY

 Round the clock CCTV monitoring in all warehouses and at the main gate Modern fire alarm and fire-fighting systems Adequate high mast lights NEED OF CFS: While briefing us about their work sir explained us the need of CFS in the industry. In earlier day when CFS had not come into existence, there was huge load on the port authorities on storing of containers for long use of space and congestion of containers piling up. This used to hamper the basic function of port of berthing or sailing of ship and loading/unloading of containers. Also managing traffic used to be a problem. Due to this in turn the efficiency of port went down. CFS basically is called as the extension arm of the port. It has increased the efficiency of port operations. WHAT IS A CFS AND HOW IT WORKS? CFS is a port facility for loading and unloading containerized cargo to and from ships. It is the place, where imported goods or export goods are ordinarily kept before clearance by the Customs and where filing of Customs manifests, bills of entry, shipping bills and other declarations, assessment and all the activities related to clearance of goods for home consumption, warehousing, temporary admissions, reexport, temporary storage for onward transit and outright export, transhipment, etc, take place. At CFS, goods are stuffed into containers or de-stuffed there from and aggregation/segregation also takes place at such places. Customs function relating to processing of manifest, import/export declarations that are filed by the carrier/importer or exporter and assessment of bill of entry/shipping bill are performed in the Custom House/Custom Office that exercises jurisdiction over the parent port/airport/ICD/LCS to which CFS is attached. In the case of customs stations where automated processing of documents has been introduced, terminals have been provided at such CFSs for recording the result of examination, etc. In some CFSs, extension of service centres have also been made available for filing documents, amendments etc. However, the assessment of the documents is carried out centrally. CFS works on behalf of Shipping Line who are their clients/customers. IMPORT PROCEDURE OF CONTINENTAL CFS: Bring container from terminal yard within 3 days of its arrival. Here an inspection of container takes place by Continental CFS people. Transportation of container done by CFS using their own vehicles and equipments. At Continental CFS they have outsourced the transportation part. CHA comes, gets the container cleared for the customs and pays all the duties or any other charges on behalf of customer. Till the container/ goods are taken away by the customer the container/goods lies in the CFS warehouse. The customer then comes to take his goods from the CFS and before taking goods away with them the customer has to pay CFS their handling charges and ground storing charges. Only after payment of the charges the customer is issued the gate pass and allowed to take away all his goods. After the goods are been taken by customer the empty container is returned back to the

Shipping Line or container provider. EXPORT PROCESS OF CONTINENTAL CFS: It is basically a reverse process of the import process. Exporter brings the goods to be exported at the gate of CFS. Goods are inspected at the Continental CFS gate, charges of handling and transportation are received by CFS and then goods are taken in to the CFS Export warehouse. Goods to be exported are loaded into the container provided by the shipping line on behalf of their customer. CHA on behalf of exporter gets container examined from the port authorities, gets it cleared from customs, pays all the charges and seals the container. Liner or CHA agent then gives clean chit to CFS to move the container to terminal yard. Transportation of container to terminal. MARKETING OF CFS SERVICES: Customers are mainly the Liners or Shipping Lines. Need to go to the shipping lines to market their services. Main asset is they being nearer to the terminals which reduces the transportation cost. MAJOR CUSTOMERS: APL Logistics. Evergreen Wan Hai PIL KMPC and so on.. Freight forwarding customers: DHL UPSS APL RULES AND REGULATIONS FOR CUSTOMERS/WARNINGS: Imports: 1. Customer should take away their goods from their warehouse within 30 days failing to which 1st warning notices would be given to customer. 2. Even though goods are not taken after more 15 days, second notice would be given to customer in which warning would include threat to auction the container. 3. After total 60 days are completed the container is auctioned online on website where eauctioning of container happens. Exports: 1. Customer is given the warning that utmost 12hrs before the arrival of ship goods should reach the CFS warehouse. 2. All details regarding coding, labels shipping line date and time of arrival of vessel should be provided to CFS. After almost two hours of informative session and visit of all the warehouses at Continental CFS we all headed towards Administration building in JNPT port premises to see the JNPT model and get information about the port. JNPT Administration Building In the administration building we were guided by another official. There we were taken to the room where the JNPT model was installed. Details received from the guide about JNPT are as follows: Started on May 26, 1989

Mainly for Bulk and Container cargo operation. Indias No. 1 Port. Handles around 60% of the cargo in India. Has Three main terminals of which one is with JNPT other two are with Australian and Dubai port authorities under the term BOT(Build Operated Transport) Details of three terminals and total as follows:

Parameters JNPCT NSICT GTICT Total

Quay Lengths (mts) 680 630 712 1992 Draft (mts) 12.5 12.5 12.5 -Capacity p.a. (in million t.e.u) 1.1 1.2 1.8 4.1 Berths (at one time) 2 2 3 7 Turn on Time (in days approx) 1.5 1.5 1.5 Channel Depth 11.5 mts (12.5 mts during high tide) Width of Channel 350 mts. (450 mts near berth) BOT to nil Australia Dubai Fourth Shallow terminal by BPCL for Liquid Cargo Quay Length(mts): 330 mts Capacity p.a.(in million t.e.u.): 5 Details of Proposed Terminals are as follows: 4th terminal details: Quay Length(mts): 2000 Capacity (in million t.e.u): 5 BOT to: Singapore 5th terminal details not yet finalised. Work on Port goes on 24hrs in 3 shifts. Stacking yard near each terminal for stacking of Containers. In case of Liquid cargo stacking yard constructed after container stacking yard and the liquid cargo till there is transported through pipelines. Another terminal for Liquid cargo proposed. After knowing about the model and other details about JNPT we all headed towards the port to see all the processes actually happening. Before going there we were been told at that time all the seven berths were occupied, that gave us an assurance of witnessing the real work. We were accompanied by the officer who explained us the JNPT model at administration building. When we reached there, we actually saw a vessel being loaded with containers for export. It was a great experience to watch the cranes in operation. Crane Operation: The whole crane works on electricity and is manually operated by a trained person. The container is placed between the four pillars of the crane. A lever consisting lock magnets to hold the container comes down and locks the four corners of the container to its four locks. Then the operator moves up the lever

and moves it to the place where container has to be discharged and places the container. The process taking place at the port is as described below. PROCESS AT THE PORT: Shipping Line provides details of their arrival on the port (date and expected time of arrival along with load on its vessel). The port authorities allot a slot to the vessel and a berth at the terminal with their software based system. This helps the port authorities to reduce waiting time of vessel on high seas to almost nil. Unloading of containers from the vessel takes place with the help of cranes. At least 3 cranes are in operation at a time. The containers are stacked up in stack yard according to CFS. Containers to be exported are loaded again by use of cranes. SOME FACTS ABOUT MANAGEMENT OF PORT OPERATIONS: Stowell's Plan is used to plan the placement of containers on the vessel according to the requirement. The norm followed are as below: Heavy containers placed at a lower deck. Containers containing hazardous substances are kept at different side separately. Containers to be offloaded at the next destination port of the vessel are kept on the upper deck. All this planning is done on the basis of data obtained from the shipping line on the lines of codes. Navis System, a US based Software is used to alot berth to the vessels on the port. VTMS (Vehicle Traffic Management System) is used to manage traffic of vessels. After watching all the process and getting knowledge about the operations we all headed to a dining hall in the premises of JNPT where lunch for us was been arranged. After having our lunch at about 2:45 pm, we all got into the bus and headed towards our college and reached back by around 4:00 pm. This is how our informative cum practical trip came to an end.