INTRODUCTION

The summer project plays a vital role in every MBA student’s career. The

summer project helps them to understand about the working environment where they are doing

their project. This also helps as a stepping stone for a MBA student to pursue his/her Full time

project. The effective utilization of this project will definitely help the students in their career.

My project is about the overall study on the Performance of CHENNAI PORT

TRUST. In this study I am going to analyze about the performance of the port, facilities available

in the port, services provided in the port, their award and reward details, certification &

departmental functions.

Based on my study I am going to prepare a SWOT analysis report for Chennai

Port Trust. I am going to prepare findings and suggestions for Chennai port based on my report.

I have collected the departmental details and the other essential details with the

help of concerned department HODs and the project guide.

The company helped me a lot in collecting the details that what I need to furnish

in this project.

INDUSTRY PROFILE

Port a major infrastructure means that plays a very important role in the economic

progress of the nation. No country can aspire for economic progress and development without

the development of efficient infrastructure. Especially in the age of globalization where

international goods and commodities are to be transported from one country to the other,

efficient infrastructure is the key to the success. 90% of the international cargo is transported by

the ships. In this view, the performance of ports plays an important role. Port is opening for

boarding or loading ships. For understanding of a port as commercial enterprise which is offering

its services on international transport makers. It is necessary to define on the one hand the micro-

economic role of a sea port in the chain of transport and on the other hand the macro-economic

functions of a sea port for their economy and the geographical region where the port is located.

The Port is a service oriented organization. At present there are 195 ports prevailing in

India. Out of which 12 are major ports, the remaining 183 ports are minor and intermediate ports.

The ports are:

Kendal Port (Gujarat)

Nava Shiva – JNPT (Maharashtra)

Mumbai Port (Maharashtra)

Marmugoa Port (Goa)

New Mangalore Port (Karnataka)

Cochin Port (Kerala)

Tuticorin Port (Tamil Nadu)

Chennai Port (Tamil Nadu)

Ennore Port (Tamil Nadu)

Vishakapatnam Port (Andhra Pradesh)

Paradip Port (Orissa)

Kolkata Port (West Bengal)

All the major ports in India are under the control of Central Government. The port is

under the Ministry Of Shipping.

Among the 12 ports Ennore Port is a private port, which is named as Ennore Port Pvt.ltd.

This Port gone under the shares with State Government.

INDIAN PORT SECTOR:

Foreign trade in any country is carried out by imports and exports. Generally,

these transactions are carried out by means of air, vessel (ship), or by land. The port will provide

facility for transporting cargo in bulk by berthing the vessels and supply the required assistance

in terms of manpower, storage, machinery, equipments, security and also acts as a custodian of

the cargo. It also ensures proper duties are paid to the customers. Ports are the major reason for

gaining the foreign exchange. The performance largely depends on the machinery possessed by

the industry and the maintenance.

INTRODUCTION ABOUT THE INDUSTRY:

The rapidly growing activities in the area of trade and commerce have thrust into

prominence of the utility of a transshipment point between sea and surface transport for the entry

and exit of a country’s export and import of cargoes.

With the opening of the economy and inception of multimodal transport system,

this vital link is expected to play an even more crucial role in promoting India’s foreign trade in

the near future. It is crucial role to examine if the Indian port, in their present form, is geared to

suit the requirements of growing business and are in a position to complete globally or the ports

need certain kind of structural changes to enable that to happen.

PORT TRAFFIC AND PORT CAPACITY:

The volume of traffic handled at Indian ports has increased at a compound annual

rate of 8.17% over the last forty years. In the year 1998-99 the major ports handled 251.7mn

tones of cargo. However, this is modest for an economy of India’s size as Rotterdam Port,

Singapore Port handling over 80% & 50% traffic respectively compared to total traffic at all

Indian major Port.

Kolkata Paradip Vizag Chennai Mangalore Marmugoa Mumbai Tuticorin Cochin Kandla JNP

Capacity 8.3 11.25 30.3 26.62 16.75 18.68 30.05 7.85 13.45 37 16

Traffic 9.16 13.11 35.65 35.20 14.21 18.02 30.97 10.15 12.67 40.63 11.72

The table above gives a comparative status of the capacity and traffic handled by

each major port in India. It is clearly evident from the table that majority of the Indian ports are

working beyond their capacities consequently overcrowding of berths is a very common sight.

This overcrowding of berth leads to pre berthing delays and longer ship turnaround time. If this

continues the queuing up of vessels at the ports will act as a big constraint on the growth of

India’s foreign trade.

SHORTCOMINGS OF INDIAN PORT:

The major factors that have contributed the low productivity of the ports can be

identified as:

Operational constraints such as frequent breakdown of cargo handling equipments.

Inadequate and outdated facilities for dredging of berths and channels.

Inefficient and non-optional deployment of port equipment.

Inadequate infrastructure facilities.

TRAFFIC PROJECTION AND INVESTMENT REQUIREMENTS:

The Indian Infrastructure report has estimated that the port traffic will increase to

650mn tones by 2005-06. In order to handle traffic of such high magnitude the creation of

additional capacity would require an investment of over Rs.250bn. the report has further

estimated that not more than 54% of total resources would be available from the international

sources for investment in port development and modernization. The balance 46% or Rs.115bn

would have to be mobilized from other sources.

Port History

The little fishing village called Chenna Patnam, which was founded in 1639, became

prominent during the early part of the 18th Century when the East India Company was active on

the East Coast. In the absence of the Harbour, the Company ships were anchored about quarter

mile offshore and the cargo to and from the ships were transported through small lighters called

Masula boats.  As the loss of cargo while transporting through Masula boats was high, it was

proposed to build a pier to berth larger crafts and an Iron screw pile pier was built in 1861 to a

length of 1,100 ft., perpendicular to the shore during November 1881, due to violent cyclone

over half a mile of breakwater was breached and equipments and human lives lost. Though there

was a demand for relocating the entrance, the restoration was resumed in 1885. 

Port of Chennai (Madras then!) until the year 1875, was simply an open roadstead on

open sandy coast swept by storms and occasional monsoons.

Sir Francis Spring, the then Chairman of Madras Port Trust in 1904 created a new North-

Eastern Entrance after closing the original Eastern Entrance  to control the siltation of the

channel in front of the basin. Subsequently Quays were constructed at different periods (i.e)

South Quay-I in 1913, the five West Quay berths in 1916 to 1920, North Quay in  1931 and

South Quay II in 1936 in the Inner Harbour which was later, christened as Dr. Ambedkar Dock.

The official inauguration of the wet dock was done on 6th November 1964 by Shri. Lal

Bahadur Shastri, the then Prime Minister of India. The dock was christened Jawahar Dock in

memory of Shri. Jawaharlal Nehru, India’s first Prime Minister. 

The Bharathi Dock was originally constructed as an outer Harbour to handle vessels upto

(-)16.2 M draft. An Oil jetty to handle Crude Oil imported by the Manali Oil Refinery (presently

Chennai Petroleum Corporation Ltd) was constructed initially during the year 1970. An Iron Ore

berth was constructed in the same dock in 1974 for exporting Iron Ore to Japan and other Far

East countries. Subsequently one more oil jetty was constructed during the year 1985 to meet the

additional demand for crude/products

In 1970s the Madras Port Trust started handling containers in Inner Harbour and as the

container traffic was increasing, a Container Terminal of 380 M length was constructed at

Bharathi Dock during the year 1983 as a first full-fledged Container Hub of the Country with

Container Storage Yard of 51,000 sq.m and a Container Freight Station of 6000 sq.m. area. The

terminal was provided with two shore cranes and other shore facilities required for Container

Terminal.

Subsequently the terminal was further extended by 220 M during the year 1991 with

additional two shore cranes and other matching infrastructural facilities. As the container traffic

was constantly increasing the terminal was further extended by 285 M, during July 2002. This

Container Terminal of 885 M total berth length with backup area was privatized under

concessional agreement with M/s. Chennai Container Terminal Private Ltd., on BOT basis for 30

years from November 2001.

Consequent to the renaming of the city of Madras as Chennai with effect from 30.9.1996,

the Madras Port Trust has been renamed as Chennai Port Trust.

With the number of car manufacturing companies located around Chennai, potential

exists for large-scale car exports through pure car carriers (PCC) shipment. In fact shippers have

already started from July, 2000 onwards.

Port Profile

Chennai Port, the third oldest port among the 12 major ports, is an emerging hub port in

the East Coast of India. This gateway port for all cargo has completed 128 years of glorious

service to the nation’s maritime trade.

Maritime trade started way back in 1639 on the sea shore Chennai. It was an open road -

stead and exposed sandy coast till 1815. The initial piers were built in 1861,but the storms of

1868 and 1872 made them inoperative. So an artificial harbour was built and the operations were

started in 1881.The cargo operations were carried out on the northern pier, located on the

northeastern side of Fort St. George in Chennai. In the first couple of years the port registered

traffic of 3 lakh tonnes of cargo handling 600 ships.

Being an artificial harbour, the port was vulnerable to the cyclones, accretion of sand

inside the basin due to underwater currents, which reduced the draft. Sir Francis Spring a

visionary skillfully drew a long-term plan to charter the course of the port in a scientific manner,

overcoming both man-made and natural challenges. The shifting of the entrance of the port from

eastern side to the North Eastern side protected the port to a large extent from the natural

vulnerabilities. By the end of 1920 the port was equipped with a dock consisting of four berths in

the West Quays, one each in the East & South Quay along with the transit sheds, warehouses and

a marshalling yard to facilitate the transfer of cargo from land to sea and vice versa. Additional

berths were added with a berth at South Quay and another between WQ2 & WQ3 in the forties.

India’s Independence saw the port gathering development, momentum. The topography

of the Port changed in 1964 when the Jawahar dock with capacity to berth 6 vessels to handle

Dry Bulk cargoes such as Coal, Iron ore, Fertilizer and non hazardous liquid cargoes was carved

out on the southern side.

In tune with the international maritime developments, the port developed the Outer

Harbour, named Bharathi Dock for handling Petroleum in 1972 and for mechanized handling of

Iron Ore in 1974. The Iron ore terminal is equipped with Mechanized ore handling plant, one of

the three such facility in the country, with a capacity of handling 8 million tonnes. The Chennai

port’s share of Iron ore export from India is 12%. The dedicated facility for oil led to the

development of oil refinery in the hinterland. This oil terminal is capable of handling Suezmax

vessels.

In 1983, the port heralded the country’s first dedicated container terminal facility

commissioned by the then prime minister Smt.Indira Gandhi on 18th December 1983. The Port

privatized this terminal and is operated by Chennai Container Terminal Private Limited. Having

the capability of handling fourth generation vessels, the terminal is ranked in the top 100

container ports in the world. Witnessing a phenomenal growth in container handling year after

year the port is added with the Second Container Terminal with a capacity to handle 1.5 M TEUs

to meet the demand. To cater to the latest generation of vessels and to exploit the steep increase

in containerized cargo the port is planning to welcome the future with a Mega Container

Terminal, capable of handling 5 Million TEUs expected to be operational from 2013.

The Chennai port is one among the major ports having Terminal Shunting Yard and

running their own Railway operations inside the harbour on the East Coast. The port is having

railway lines running up to 68 kms and handles 25% of the total volume of the cargo, 4360 rakes

(239412 wagons) during 2009-10.

The port with three Docks, 24 berths and draft ranging from 12m to 16.5m has become a

hub port for Containers, Cars and Project Cargo in the East Coast. The port has handled an all

time high of 61.06 Million tonnes of cargo registering an increase of 6.2% over previous year.

An increase of 10.14% in handling of cars from 273917 Units in the year 2009-10 when

compared with 248697 Units in the year 2008-09 and an increase of 6.39% in handling of

containers from 1143373 TEUs in the year 2008-09 to 1216438 TEUs in the year 2009-10. The

long term plan for Chennai Port envisages that the Port will mainly handle 4C’s i.e. Containers,

Cars, Cruise and Clean Cargo.

LOCATION OF CHENNAI PORT TRUST

Chennai Port is one of the twelve major ports in the country and the second largest port in

India in terms of cargo volume handled per annum. It serves the geographical regions of Tamil

Nadu, Pondichery, South Andhra Pradesh and parts of Karnataka.

Chennai Port is located at latitude of 13.06° N and longitude of 80.18° E on the

southeast coast of India and in the northeast corner of Tamil Nadu. It is located on a flat coastal

plain known as the eastern coastal Plains.

From a humble beginning of its commercial operations 128 years ago, it has now grown into

an emerging hub on the east coast of India. Though it is about 600 nautical miles away from the

international maritime route, because of its location, proximity to market, competitive pricing, safe

and secure operations this is one of the preferred ports for the trade.

SERVICE PROFILE

Facilities For Exporters:

This has significant bearing on the Port’s performance making this port a trendsetter in

export performance envisaging the following advantage for Port Users:

The concept of single window clearance is adopted by Chennai Port and an Export

Documentation Centre housing Customs, Chennai Clearing and Forwarding, Dock Labour

Board, etc. is located inside the port complex;

The palletized cargo is given 10% rebate on wharfage and the weight of the pallet is not

taken into account for the purpose of calculating wharfage;

30 days free day time is allowed for aggregating the export cargo on the wharf before the

arrival of the vessel;

Open space is made available in transit area for export cargo such as barytes, quartz, on

rental basis

Demurrage for export goods lying in transit shed beyond 30 days is charged on minimum

flat rate basis of Rs.3 per wharfage unit per day or part thereof

100% waiver of heavy lift charges on Export of Raw Granite Blocks

Preferential allotment of space for storage of export cargo

For export of motor cars, jeeps and vans using the Ro-Ro system an export promotional

wharfage rate on ad valorem basis of only 0.3% of FOB value is charged

The Chennai Port offers Priority berthing facilities for Export Oriented vessels. In

addition, a scheme called PRIORITY BERTH RESERVATION SCHEME approved by

Government for berthing vessels on arrival on payment of BERTH RESERVATION FEE is

being made popular among the trade.

A Senior Traffic Officer has been re-designated as ‘Export Promotion Cell Officer’ to co-

ordinate with the HIGH POWER COMMITTEE constituted for the redressal of grievances faced

by the Exporters.

Almost 100% of the Export FCL containers are stuffed outside the Port and loaded

containers are brought into the terminal for shipment.

Only Less than Container Load (LCL) export cargoes are stuffed inside the Port for

which a very modern EXPORT CONTAINER FREIGHT STATION, is functioning within the

port where ON WHEEL LOADING facilities are available.

Direct Shipment of Granite Blocks is permitted.

The Export cargo shut out by the ship by act of God such as Cyclone, grounding of

vessels, etc. are allowed TWO WORKING DAYS AS ADDITIONAL FREE DAYS next to the

date of completion of taking in of export by the vessel.

No DEMURRAGE CHARGES on the cargo stuffed in the container for export and lying

in the container terminal. Only storage charges are collected.

Priority berthing is given for export vessels (one vessel at a time)

Demurrage for export goods lying in transit shed beyond 30 days is charged on minimum

flat rate basis of 3.60 per wharfage unit per da or part thereof

Heavy lift charges on export of Raw Granite Blocks is waived

Preferential allotment of space for storage of export cargo

To attract agricultural products, Port has introduced a reduced Tariff of Rs. 7.50/- per

tonne for the Export of bagged Sugar, Wheat and Rice

When direct delivery/direct loading is allowed, no C & F charges will be applicable. This

gives substantial reduction in charges for Granite Blocks, Barytes in Bags, Steel etc., Wherever

directly loaded/delivered

Facilities for Importers:

Import Counters for filing Import Applications are kept open on all Board Holidays

except on Board’s Closed Holidays and Sundays.

CRANAGE on Heavy Lift Packages has been reduced.

STORAGE CHARGES on abandoned FCL containers is restricted upto 2 months.

In case the Trust is unable to supply Mechanical Equipment, use of private equipment is

permitted.

Weighment is not at all required for DRY BULK CARGOES

When the port is unable to trace the package at the time of delivery owing to congestion

or wrong sorting or incorrect tally, ADDITIONAL FREE DAYS are allowed from the date of

receipt of enquiry till the package are traced out and intimated.

Commercial Advantages:

Chennai Port is working round -the-clock, 7 days a week, to facilitate more export &

import  through Port of Chennai.

The Port also conducts PORT USERS MEETING periodically to ensure customer

satisfaction by maintaining effective service quality to augment exports.

Private equipment are allowed in certain Operational areas to augment rate of

loading/discharging of dry bulk cargoes.

50% F.C. VAIGAI Heavy Lifting Cranage Charges need not be paid upto 15 tons weight,

if shipped by the vessels own cranes

A rebate of 10% in wharfage on the quantity handled in excess of 10% over and above

the previous year's throughput by an individual importer/exporter subject to a minimum handling

of 50,000 MT per annum in the previous year.

Comprehensive stevedoring levy of 192% of actual wages for all types of cargoes

C & F Levy for bulk cargoes, ore & timber logs reduced to 3.75/MT

C & F Levy will be collected through Import Application when actual deployment of

labor for C & F operations are there

The TERMINAL HANDLING CHARGES at Chennai Port’s Container Terminal are

quite competitive even when compared to the Terminal Handling Charges collected at the

Regional Ports viz. COLOMBO and SINGAPORE.

For containers consigned to and from INLAND CONTAINER DEPOTS, the Port allows

30 free days including SUNDAYS and Port’s HOLIDAYS and for ICD, NEW DELHI it is free

upto the date of loading on flats.

TRANSHIPMENT CONTAINERS are allowed 30 free days.

BERTH AND TUG DETAILS

BERTH: Berth is the term used in ports and harbors to define a specific location where a

vessel may be berthed, usually for the purposes of loading and unloading.

Most berths will be alongside a quay or a jetty (large ports) or pontoons (small harbours

and marinas). Berths are either general or specific to the types of vessel that use them in the

process. The size of the berths varies from 5-10m for a small boat in a marina to over 400m for

the largest tankers.

The following is a list of berth types that can be found in a large port.

Bulk Berth - used to handle bulk cargo. Vessels are loaded using either excavators and

conveyor belts or pipelines. Storage facilities for the bulk cargo are often alongside the berth -

e.g. silos or stockpiles.

Container Berth - used to handle 20' and 40' standard intermodal containers. Vessels are

loaded and unloaded by container cranes, designed specifically for the task. Alongside the quay

there is often a large flat area used to store both the imported and exported containers.

General Berth - used to handle smaller shipments of general cargo. Vessels using these

would usually have their own lifting gear, but some ports will provide mobile cranes to do this.

Marina Berth - used to allow the owners of leisure craft on and off their boats.

Generally alongside pontoons and accessed by hinged bridges (in tidal locations) to the shore.

Product Berth - used to handle oil and gas related products, usually in liquid form.

Vessels are loaded via loading arms containing the pipe lines. Storage facilities for the products

are usually some distance away from the berth and connected by several pipes to ensure fast

loading.

X Berth - suitable for nuclear powered warships, and part of an operational Naval base or

a building and refitting yard

Z Berth - suitable for nuclear powered warships, as a location for operational visits or

stand offs

TUGS:A tugboat (tug) is a boat that maneuvers vessels by pushing or towing them. Tugs

move vessels that either should not move themselves, such as ships in a crowded harbor or a

narrow canal, or those that cannot move themselves alone, such as barges, disabled ships, or oil

platforms. Tugboats are powerful for their size and strongly built; some are ocean-going. Some

tugboats serve as icebreakers or salvage boats. Early tugboats had steam engines; today diesel

engines are used. In addition to towing gear, many tugboats contain firefighting monitors or

guns, allowing them to assist in firefighting duties, especially in harbors

Berth Details

Berth Details as on 18.06.2010

Sl.

No.

Name of

Berth Capacity of Cranes

Length In

(Meters)

Max. Permissible Draft

In (Meters) - Dock Density

varies between 1019-

1025     

Date of

Survey

Jawahar Dock

1 J.D-1 10 T(J)-1 No 218.33 11.50 14.05.10

2 J.D-3 10 T(ABG)-3Nos 218.33 11.50 29.04.10

3 J.D-5 Under BRS Scheme 218.33 11.50 12.04.10

4 J.D-2 G1 -20T -1No 218.33 11.50 22.04.10

5 J.D-4 G2 -20T -1No 218.33 11.00 18.05.10

6 J.D-6 G3 -20T -1No 218.33 11.00 26.05.10

Ambedkar Dock

7 NQ   198.00 8.50 06.05.10

8 W.Q-1 10T-1Nos 170.60 11.00 05.05.10

9 W.Q-2 15T-1Nos 170.60 12.00 15.05.10

10 C.B 15T-1 Nos 170.60 12.00 31.01.10

11 W.Q-3 10T - 1 No 170.60 12.00 27.04.10

12 W.Q-4 10T - 1 No 170.60 11.00 28.04.10

13 S.Q-1 10T(J)-2Nos, 

10T(ABG)-1No, 

50T(H)-1No

246.00 9.50 19.01.10

14 S.Q-2 10T(J)-2Nos 179.00 9.50 05.03.10

15 2nd CT-I   -- 12.0 29.01.10

16 2nd CT-II   -- 12.0 03.02.10

17 2nd CT-III   -- 12.0 03.03.10

18 Naval

Berth

North

  60.00 09.00 14.02.07

19 Naval

Berth

South

  140.00 12.00 14.02.07

Bharathi Dock

20 B.D-1 Loading Arm - 5 Nos 338.94 14.60 29.03.10

21 B.D-3 Loading Arm - 5 Nos 304.00 16.50 12.01.10

22 B.D-2 Ship Loader - 2 Nos 274.32 16.50 17.05.10

Container Terminal

23 C.T-1RMQC-6 Nos

RTG-14 Nos

RTG-2Nos(ABG)

200.00 13.40 21.05.10

24 C.T-2 200.00 13.40 09.01.10

25 C.T-3 200.00 13.40 01.02.10

26 C.T-4 285.00 13.40 26.02.10

Approach Channel  

Zone 1   750.00    

Zone - II to Zone

- VII

  5950.00    

Turning Circle   560.00    

TUG DETAILS

TUGS

NAME Year BHP Bollard Pull

Sekkizhar 2003 1770 d 2 32 Tons

Sundaranar 2002 1770 x 2 - do-

Bharathiyar 2001 1700 x 2 45 Tons

Singaravelar 1996 1700 x 2 32 Tons

Nethaji 1995 1700 x 2 32 Tons

PORT RELATED TERMS

I. Coastal vessel shall mean vessel exclusively employed in trading between any port or

place in India to any other port or place in India having a valid coastal licence issued by

the competent authority.

II. Consignment shall mean the goods covered by one import or export application’.

III. Enclosed Harbour shall mean the area within the breakwater upto buoy No.9.

IV. Foreign-going vessel shall mean any vessel other than coastal vessel.

V. Shift shall mean the shift of such hours as may be prescribed by the CHPT from time to

time. The shift hours so prescribed by the CHPT are as under:

I Shift 0600 to 1100 hours

1200 to 1400 hours.

II Shift 1400 to 1900 hours

1930 to 2200 hours.

III Shift 2200 to 0200 hours

0230 to 0600 hours

Unless otherwise specified ‘Day’ shall be reckoned with from 06.00 a.m. of a day to

06.00 a.m. on the following day.

For purpose of recovering service charges as provided in the various chapters in the Scale of

Rates, half-a-shift shall be 4 hours or less in a shift and any period in excess of 4 hours in a shift shall be

treated as a full shift. Unless otherwise specified ‘half-a-shift’ shall be reckoned with as detailed below:

I Shift  First Half  : 0600 to 1000 hours

  Second Half  : 1000 to 1400 hours

II Shift First Half  : 1400 to 1800 hours

  Second Half  : 1800 to 2200 hours

III Shift First Half  : 2200 to 0200 hours

  Second Half  : 0200 to 0600 hours

VI. ‘Wharfage’ shall mean the basic dues recoverable on all cargo imported or exported or

transhipped or passing through the port, whether porteraged by the CHPT or not.

VII. Port Limit shall mean Port Limit of CHPT notified by the Central Government in terms

of Section 4(2) of the Indian Ports Act, 1908.

MISSION AND VISION

MISSION

Achieve excellence in Port operations with State-of-the-Art technologies.

Enhance competence and enthuse workforce to maximize customer

satisfaction.

Anticipate and adapt to the changing global scenario.

Act as a catalyst for sustained development of the Region.

VISION

To be recognized as a futuristic Port with foresight.

FACILITIES

POLICY STATEMENT

ISO CERTIFICATION

Chennai Port is an ISO 9001:2000 certified organization. It is essential that all the

major ports are to be certified by the ISO. It states that the ISO certified ports are much safer for

POLICY

Provide efficient, prompt, safe and timely services at optimum cost

Ensure quick turn round of vessels by providing facilities for efficient handling

of cargo

Maintain total transparency in all our transaction of the and 

Continually improve our services to meet the expectations of the port users,

employees and the society

the cargo’s transshipment. The ports without ISO certification are not eligible to handle the

cargoes at international level. Chennai port is certified by the ISO in the year 2004.

ISO 9001:2000 specifies requirements for a quality management system where an

organization

1. needs to demonstrate its ability to consistently provide product that meets customer and

applicable regulatory requirements, and

2. Aims to enhance customer satisfaction through the effective application of the system,

including processes for continual improvement of the system and the assurance of

conformity to customer and applicable regulatory requirements.

All requirements of this International Standard are generic and are intended to be applicable

to all organizations, regardless of type, size and product provided.

Where any requirement(s) of this International Standard cannot be applied due to the nature

of an organization and its product, this can be considered for exclusion.

Where exclusions are made, claims of conformity to this International Standard are not

acceptable unless these exclusions are limited to requirements within clause 7, and such

exclusions do not affect the organization's ability, or responsibility, to provide product that meets

customer and applicable regulatory requirements.

FACILITIES FOR EMPLOYEES

Chennai Port Trust has been extending a number of welfare measures to the officers/employees

and their family members. The major and important welfare measures which are implemented by

the Port are described below in brief:

Accommodation

The Trust has provided about 18.7% of the officers/employees with quarters at Tondiarpet,

Cassimode, Clive Battery, Spring haven Road and Napier Bridge near Heavy Workshop. There

are 1736 quarters of various types (Types I to V) and 1540 have been occupied as on 1/1/2008

For the benefit of the employees of the Chennai Port Trust and Dock Labour Board, the Trust has

constructed a Community Hall, which is being allotted to the employees/retired employees for

religious/social functions @ Rs.500/- per day and for the deceased/retired employees’

spouse/dependant children @ Rs.1000/- per day, and even for the outsiders the Community Hall

is being allotted on request at the rate of Rs.5000/- per day as rent. A Welfare Committee has

been functioning since 01/01/1991 to ensure efficient and orderly maintenance of the colony and

to promote co-operation, cleanliness, peace, amity and cordiality among the residents of the

Colony.

Chennai Port & Dock Educational Trust Higher Secondary School

With a view to provide better educational facilities to the children of the employees of the Trust,

the Madras Port and Dock Educational Trust Higher Secondary School with English and Tamil

as medium of instruction was started in June, 1989 at the Chennai Port Trust Tondiarpet Housing

Colony and has been functioning well since then. The School is being managed by the Madras

Port and Dock Educational Trust headed by the Chairman, Chennai Port Trust.

During the academic year 2007-08, Rs.1,63,72,000/- has been granted to the School Managing

Committee for the maintenance of Madras Port & Dock Educational Trust Higher Secondary

School.

Sports Activities

A Stadium with long pavilion in the capacity of thousand viewers has been constructed at

Tondiarpet Housing Colony. The Stadium has been designed to conduct various games and

sports at a time. Grounds have been earmarked separately for Football, Cricket, Track and Field,

Kabaddi, Volley Ball, Basket Ball, Badminton and Weight Lifting etc. Annual Sports

Gym For Men & Women Residing At Tondiarpet Housing Colony

For the benefit of the residents, a well furnished Gym For Men and a Gym with a Yoga Centre

for the use of women residents at Tondiarpet Housing Colony have been functioning since 2006.

Training In Tailoring

With a view to provide opportunity in self-employment to the women dependents of the

employees, a Tailoring Training Centre is functioning in the Trust Housing Colony at Tondiarpet

and the women dependents who undergo training at this Centre are taught tailoring and

embroidery work for a period of six months at free of cost. These trainees are also paid a cash

incentive on successful completion of the course.

Ritual Shed

A Ritual Shed has been constructed at Tondiarpet Housing Colony and allotted to the residence

of Tondiarpet Housing Colony and other employees at nominal rent of Rs.1/- per day so as to

perform rituals.

Construction Of Modernized Air-Conditioned Community Hall At Tondiarpet Housing

Colony (Thc)

The Board at its meeting held on 27/8/2007 approved the proposal vide B.R. No.66 for

construction of Modernized Air-conditioned Community Hall at Tondiarpet Housing Colony for

the use of the employees of the Trust, Persioners’ Families on normal rent and for the residents

of North Chennai on payment of rent as fixed by the Board from time to time.

Scholarship

In order to alleviate the burden of children’s education and with a view to encourage the

employees to give better education to their wards, every year the Trust is granting scholarships of

varying amount from Rs.350/- to Rs.5,400/- to the officers / employees of the Trust for their

wards studying from X Std to Graduate / Post Graduate Courses. Scholarship for

Correspondence Courses is also being granted to first two children of the employees of the

Trust .The Scholarships are being awarded in two categories viz. Merit and General. Those

children of the employees who secure 70% and above marks in aggregate in cases of OC

Categories and 60% and above marks in aggregate in cases of SC/ST Categories are eligible for

award of Merit Scholarships. For award ofGeneral Scholarship a pass mark in each subject is

sufficient for all the categories.

During 2007-2008, Rs.25,11,372/- has been granted towards the payment of scholarships to

the 1,230 officers / employees of the Trust in respect of their wards.

Text Books

The Trust has been granting financial assistance for purchase of text books to the

officers/employees in respect of their children studying from I Std. to Degree Courses every

year.

A sum of Rs.8,98,723/- has been granted to the 3033 officers / employees of the Trust in

respect of their children studying from I Std. to Degree Courses for purchase of Text Books

for the academic year 2007-08.

Cash Award

A cash award of Rs.300/- each is being granted to the children of the employees who secure 80%

and above marks in aggregate in cases of OC candidates and 70% and above marks in aggregate

in cases of SC/ST candidates in the X Std. / XII Std. Graduate & Post Graduate Courses

Examinations held every academic year.

Special Cash Award

In order to recognize the meritorious academic performance of the wards of the employees of the

Trust, who secure overall 1st, 2nd or 3rd ranks or any of the first 3 ranks in any one or more

subjects in the State/University Level Public Examinations, Special Cash Awards varying

Rs.200/- to Rs.2,000/- are being granted.

During the year 2007-08 Rs. 62,300/- was granted towards Cash Awards and Special Cash

Award to the 209 serving officers employees in respect of their children.

Canteen

There are 3 major Canteens of which one Canteen named by Chennai Port Trust Industrial

Employees’ Co-operative Canteen Ltd. is being run by the Trust’s employees on co-operative

basis.

(i) Chennai Port Trust Industrial Employees’ Co-operative Canteen Ltd.is functioning with

two branches inside the Harbour.

The Port Trust Administration has provided accommodation, supply of water and electricity at

free of cost, besides providing utensils and furniture to CHPTIECC Ltd. It also meets the

expenditure on salaries of the employees of the Canteen.

(ii) Chennai Port Trust Administrative Offices Canteen is functioning in the Harbour. The

administration has provided accommodation on nominal rent and granted concession in water

and electricity charges to this Canteen. The Trust also gives an annual grant to meet a portion of

the salaries of the employees of the above Canteen.

(iii) Sea Shore Canteen

For the benefit of employees of the Trust and the Port Users, a new Canteen by name “ Sea

Shore Canteen” has been functioning from 27.02.2006, which was inaugurated by the Honb’le

Minister for Shipping, at the Centre Berth inside the Port. This canteen is maintained by the

Constituted Committee. The price of edibles in this canteen is fixed on par with the

Administrative Offices Canteen.

Women Employees Welfare Committee

For the benefit of the women employees working in the Trust, a committee named Women

Employees’ Welfare Committee has been functioning since 1988. Various programmes on

medical treatment, stress management, skin care, making of handicrafts etc. are being conducted

by the Committee from time to time

International Women’s Day was celebrated by the committee on 10/3/2008 at the Conference

Hall of Old. Adm. Officues Building of Chennai Port Trust. During the celebration, various

competitions for women employees were conducted and prizes were distributed to the winners.

The financial assistance for conducting the program was being paid by the Trust. Blood

Donation Camp was conducted on 7/3/2008 ahead of the celebration.

Staff Institute

A Staff Institute has been functioning at Anchore Gate Building in which Carrom, Chess, Gym,

Yoga, Billiards and Sports Games are practised by the staff of Chennai Port Trust employees and

in which a Library is also functioning for them.

Officers Club

For the benefit of the Officers of the Trust, an Officers Club is functioning at Spring Haven

Road. The Trust is granting Rs.2,00,000/- per year for the maintenance of the Officers Club. The

Officers Club is carrying out the following activities:

1. Enacting dramas and arranging Cultural Programme.

2. Arranging lectures and debates.

3. Managing a Library and Reading Room, containing books, Periodicals and Newspapers.

4. Providing scope for athletic Sports and Games both Indoor and Outdoor.

5. Celebration of Festivals.

6. Celebration of Retirement Functions.

Family Disputes

Family disputes are often solved by imparting counseling to the employees of the Trust and their

relatives concerned. Counseling has been conducted on 18 cases of family disputes and settled

amicably during 2007-08.

Quality Life Programme

In order to keep up the employees’ health, De-addiction camps have been conducted from time

to time among the employees of the Trust concerned explaining the adverse effect of alcoholism

and the resulting destruction of the family of the employees who consume alcohol.

Creche

For the benefit of the employees of the Trust, a crèche has been functioning at the Chennai Port

Trust Administrative Offices Building since 1988. The crèche was renovated and re-opened by

the Chairman of Chennai Port Trust on 6/2/2008 for the benefit of kids of employees of the

Trust.The Trust is granting Rs.1,45,000/- per year as financial assistance to maintain the crèche.

Welfare Fund

In order to meet the expenditure towards welfare measures for the employees of the Trust a

considerable amount has been provided in the Budget Estimate every year.

PAYROLL

In a company, payroll is the sum of all financial records of salaries, wages, bonuses and

deductions. In accounting, payroll refers to the amount paid to employees for services they

provided during a certain period of time. Payroll plays a major role in a company for several

reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes

considerably affect the net income of most companies and they are subject to laws and

regulations (e.g. in the U.S. payroll is subject to federal and state regulations). From ethics in

business viewpoint payroll is a critical department as employees are responsive to payroll errors

and irregularities: good employee morale requires payroll to be paid timely and accurately. The

primary mission of the payroll department is to ensure that all employees are paid accurately and

timely with the correct withholdings and deductions, and to ensure the withholdings and

deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and

deductions from a paycheck.

In Chennai port trust the employees are classified in to four different classes.

They are Class-I: HOD’ and Additional Officers

Class-II: Middle Level Officers

Class-III: Clerical Staffs

Class-IV: Attenders, Mazdoors, Sweepers

60% of the organization strength is comprised of Class III&IV group of employees.

30% of the organization strength is comprised of Class II group of employees.

10% of the organization strength is comprised of Class I group of employees.

The payroll for the employees is based on their classes.

Class Strength of Employees(%) Basic

III&IV 60 Between 7000-12000

II 30 Between 12500-17500

I 10 Between 20000-25000

AWARDS AND REWARDS

Awards:

Chennai Port is ranked 2’nd place among the major ports for its overall

performance.(This ranking will be changing every year)

Chennai port is awarded as THE BEST CARGO HANDLING port among the

major ports.

Chennai port is holding the 91’st place among top 100 international ports.

Chennai port is awarded as the BEST TOURISM FRIENDLY PORT among the

Indian ports.

Chennai port is awarded as the BEST CULTURAL PORT for its cultural

excellency.

Rewards:

Chennai port is rewarding its employees with cash for their excellent performance

every year.

Chennai port is rewarding its employees children with cash for their academic

performance.

Chennai port is rewarding its employees with medals and certificates for their

social activities on every Independence Day function.

Chennai port is encouraging every department by providing attractive incentives

for their overall performance.

NEED OF THE STUDY

To study about the overall performance of the organisation.

To know the daily activities of the port.

To know the service details available in the port.

To know the ISO certification details.

To know the awards and rewards received by the port.

SCOPE OF THE STUDY

It provides solution to the current problems.

It determines the current scenario of the concern.

It provides more information for development of the organization.

It provides the details about the functional departments.

It guides to improvise the action plan.

It helps to know the obstacles in the organization and provides a remedy to

overcome those obstacles.

OBJECTIVES OF THE STUDY

Primary Objective:

To study the overall performance of Chennai Port Trust.

Secondary Objective:

To study about the functions of the internal departments.

To know the problems in the organization and to find the remedies.

To analyze the Strength, Weakness, Opportunities, Threats (SWOT) of the

company.

DEPARTMENTS IN CHENNAI PORT TRUST

Chennai port is governed by the board of trustees. Around 8174 employees were working

in Chennai port. Among these 8174 employees 930 were female staffs.

Head of the organization is The Chairman of senior IAS cadre. He will be assisted

by the Deputy Chairman and all other functional HODs.

There are 9 departments in the Chennai Port Trust. They are:

1. General Administrative Dept

2. Civil Engineering Dept

3. Mechanical Engineering Dept

4. Marine Dept

5. Traffic Dept

6. Finance Dept

7. Medical Dept

8. Materials Management(Stores) Dept

9. Security Dept

Functions Of The Departments:

General Administrative Dept:

SECRETARY is the head of the department.

This department is also known as Secretary’s department.

Formation of rules and regulations, recruitment, training, human resource

development, preparing budgets are the primary function of this department.

In general this department consists of all the personal activities of the Chennai

port trust.

The internal functions of this department are segregated in to different sections.

Vigilance Dept:

It is an internal department associated with General Administrative Dept.

Chief Vigilance Officer is the head of the department.

This department works to eliminate the corruption in the Chennai port.

Civil Engineering Dept:

Chief Civil Engineer is the head of the department.

This department involves in construction of WHARF.(place where port can

handle cargo)

Apart from wharfs they also construct the buildings.

Cleanliness, maintanence, conservancy, painting and other masonary woks are the

other functions of this department.

Mechanical Dept:

Chief Mechanical Engineer is the head of the department.

Procurement, maintenance and replacement of machineries is the primary work of

the department.

Procurement of lighting and other provisions like Air conditioners, transport and

electrical equipments are their duties.

Pipe line maintenance, crane operations are some of their works in the

organization.

Marine Dept:

Deputy Conservator is the head of the department.

This department deals with all the floating equipments in Chennai port.

This department looks after the maintenance of the floating equipments.

The marine department is responsible for the movement of vessels in port.

Traffic Dept:

Traffic Manager is the head of the department.

Here the term Traffic refers to the movement of the cargo.

The traffic department handles more than 60mn tones of cargo every year.

The charges for handling the cargo is based on the weightage of cargo.

Finance Dept:

Chief Accounts Officer is the head of the department.

They will collect the bill and settle the bills raised by the user agents.

The salaries for the employees are being credited to the bank by this department.

They will settle all the amounts related to the purchase.

Pension, loan, drawl of increment, preparation of annual budget are also their

other responsibilities.

They are fully responsible for all the audit queries.

Medical Dept:

Chennai port is having a separate hospital for their employees.

Chief Medical Officer is the head of the department.

It is a multi-specialty hospital with expert and experienced doctors.

The hospital will function around the clock with all the facilities.

The hospital is rendering free service to the employees and their family.

Medicines are also provided to them in free of cost.

In case of emergency the patients will be referred to some other hospitals and Port

trust will settle the treatment charges.

Materials Management Department:

Chief Materials Manager is the head of the department.

This department is also considered as the subordinate dept for mechanical dept.

This department is responsible for procurement of goods to the port.

This department will procure pin to plane.

This department will look after the day to day needs of the port.

Security Dept:

Central Industrial Security Force (CISF) is the security wing of the Chennai port.

This department comes under the ministry of defence.

Chief Commandant is the head of the department.

The CISF employees will also enjoy all facilities provided by the port.

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It

involves specifying the objective of the business venture or project and identifying the internal

and external factors that are favorable and unfavorable to achieve that objective. The technique is

credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and

1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT

analysis may be incorporated into the strategic planning model. Strategic Planning, has been the

subject of much research.

Strengths: attributes of the person or company that are helpful to achieving the

objective(s).

Weaknesses: attributes of the person or company that are harmful to achieving the

objective(s).

Opportunities: external conditions that are helpful to achieving the objective(s).

Threats: external conditions which could do damage to the objective(s).

Identification of SWOTs are essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the

SWOTs. If the objective is NOT attainable a different objective must be selected and the process

repeated.

The SWOT analysis is often used in academia to highlight and identify strengths,

weaknesses, opportunities and threats.It is particularly helpful in identifying areas for

development.

SWOT Analysis for the Chennai Port Trust

Strengths

Strategic Geographical location

Dedicated facilities for handling all major cargo types

Good multimodal connectivity

First Mover advantage and an established base of customers

Long term agreements with users like CPCL and Hyundai

Best location on the East Coast for cruise operations in view of good airconnectivity and

proximity to cruise destinations like Bangkok/ Pattaya/ Singapore/Malaysia/

Indonesia /Andaman & Nicobar

ISO 9001: 2000 compliant port

ISPS Compliant port

Good IT implementation, web enabled port-user interaction

Good labour relations

Uninterrupted pilotage operations

Port trust has diverse representation of different interest groups

Port’s own training institute

Sufficient reserves & surplus

Good traffic growth and revenues in recent years

Weakness

Congested road approach

Traffic evacuation not allowed during the day time

Restricted land availability

Higher tariffs for use of plants & equipments

Sub-optimal usage of rail connectivity

Exposure to dust & saline environment, requiring higher maintenance expense

Perceived need for improvement in service levels to retain existing clients, avoid them

being lost to otherports and for developing new ones

Efficiencies lower and tariffs levels higher than those in international ports in the region

like Singapore, Colombo, Hong Kong and Dubai

Ageing workforce

Need for additional environment pollution management

Surplus labour of about 600 in different departments

Restriction on investment of surplus fund to government securities and nationalized

banks fixed deposits

High turnover among skilled staff in

Sufficient working capital to meet its current obligations marine department like pilots

and marine engineers

Inadequate manpower to operate the dredgers round the clock resulting in lower

utilization of dredgers and higher fixed costs thereby increasing overall cost of dredging

Port does not have fully computerized management accounting system Lack of

systematic marketing

Opportunities

Positive economic environment in the years to come with an anticipated 7%GDP growth

rate, stable inflation and foreign exchange rates and rising international trade

Increasing containerisation and good forecasted demand with strong business potential

Strong forecasted growth in automobile exports

Increased ship sizes

Increasing automation

Possibility to tap other sources of revenue

Ship Repair facilities and services to Ship Owners

Engineering Consultancy Services to Other Ports

Provision of Marine Services/BOT services to other Ports

Management & Technical consultancy & training services to other smaller ports

JV or strategic investment with minor/ intermediate ports

Potential to attract main line vessels

Better road connectivity after construction of proposed road projects

Threats

Competition from major ports specially from Ennore and Tuticorin port

Competition from minor ports mainly from Krishnapatnam

Expected ban on export of minerals

Loss of lucrative cargo like coal & iron ore

Increase in awareness among common public about environmental issues

There are too many gates providing access to port, increasing vulnerability and efforts to

maintain security

High possibility of reduction in government funding construction of a cruise terminal

and marina

Increased focus on private-publicpartnerships and the landlord model of port operations

FINDINGS

1. The tariffs for the services are too high.

2. The equipments in the port are not up to date. There are no international standard

equipments.

3. The office premises seem to be very untidy.

4. The latrines and bathrooms are not maintaining properly.

5. The canteen food is unhygienic and cause digestive problems.

6. The hospital is very near to the coal handling department, which is not safe for the

patients.

7. Man power is excess in the port.

8. Employees are not punctual to the office.

9. Most of the port departments were privatized; this is the main reason for the imbalance in

their economy.

10. The port environment seems to be highly polluted, due to the coal, iron ore and chemical

dusts.

11. There is no mutual relationship between the employees and the management.

12. The computer systems are not properly used, since lack of knowledge.

13. Port oriented IT projects are being outsourced to some other MNC’s.

14. There are no classroom sessions for the employees.

15. Employees safety measures are not in a good manner.

SUGGESTIONS

1. Frequent classroom sessions have to be conducted to the employees.

2. A separate IT sector can be launched for the port usage, this provides some employment

opportunities.

3. Employees should be provided with a face mask and a hand glove in order to avoid

allergic infections.

4. Office premises have to be upgraded to international standards.

5. Some attractive VRS schemes can be introduced.

6. Port tariff charges can be lowered.

7. Can visit other international ports which help to upgrade their equipments.

8. Employee’s meeting has to be conducted every month in order to maintain a good

relationship between top level management.

9. Conveyance facility like cabs can be provided to the employees.

10. A good standard canteen should be provided for the employees at a nominal cost.

11. Facilities in the hospital have to be upgraded.

12. The no of entrance gates should be reduced in order to avoid the security problems.

CONCLUSION

The summer project helped me a lot to know about the working environment of the

Chennai Port Trust and the other functions. For this study I have visited the various departments

of the Port and collected the details that I need.

I have prepared a report by analyzing the performance of the port, facilities available and

functions of the departments in port.

Based on my analysis I have prepared a SWOT analysis for the organization. I have also

prepared some Findings and Suggestions for the organization on the basis of my report.

Every beginning will have a conclusion. Likewise, here by I conclude my project by

expressing my gratitude to the people those who have helped me a lot for preparing this Project

Report.

DAILY REPORT

01.07.2010

Received project confirmation letter from Chennai Port Trust and company

profile.

05.07.2010

Visited the Secretary department of Chennai Port Trust.

Collected details about their function, department Heads and department

structure.

07.05.2010

Collected the information about civil and mechanical department.

Received details about their function and its department structure.

09.05.2010

Collected the details about Marine and traffic department.

Collected details about the movement of cargoes, berth allotment and shift details.

12.07.2010

Collected the details about Stores Department and Medical department.

Received the functions and department structure.

Collected the details about Port Trust Hospital.

15.07.2010

Received the berth and the tug details in the port.

Facility details for both the port users and employees..

20.07.2010

Received their Vision Mission and Policy statements.

Received ISO certification details and details about their awards and rewards.

23.07.2010

Prepared SWOT analysis based on the collected details.

Prepared suggestions and findings to Chennai Port.

26.07.2010

Received details about the export and import facilities available in the port.