PPP IN TRANSPORT INFRASTRUCTURE

PORTS

AR. MUKUL SAINIM.TECH 1ST YEAR,

INFRASTRUCTURE SYTEMS CTRANS, IIT ROORKEE

BOX 12.1: OBJECTIVES OF PORTSBOX 12.2: SHIP - BIGGER THE BETTERBOX 12.3: VALUE ADDING SERVICES AT PORTBOX 12.4: PORT LABOUR

PRODUCTIVITYBOX 12.5: PORT COSTS

INTRODUCTION

Port is an infrastructure facility for receiving ships and transferring cargo. IT can be classified into-

1. Sea port or port.2. Inland port.3. River port.4. Dry port.

India has 13(12+1) major ports and 187 notified/intermediate ports, handling 95% of foreign trade by volume and 70% by value.

All major ports are governed by ‘The major ports trust act,1963’ under the prime responsibility of central government and was amended in 1997 for enabling private participation.

Minor ports are under the jurisdiction of various state governments and are governed by ‘Indian ports act, 1908’.

SOUTH KOREAN PORT OF BUSAN

Providing unimpeded navigation to all forms maritime transport.

Offer sheltered and safe accommodation to vessels. Facilitating quick, efficient and cost effective cargo handling

between inland and maritime transport systems and vice versa.

Arrange for smooth aggregation and dispersal of cargo between port and hinterland.

Offer various services and facilities required by ships and cargo, namely bunkering, fresh water supply, repair, security, fire fighting, transit storage etc.

BOX 12.1: OBJECTIVES OF PORTS

BETTER INFRASTRUCTURE PLANNING & ITS MANAGEMENT

Solution

BOX 12.2: SHIP - BIGGER THE BETTER

Containerization has captured now 60% of International trade with a history of just fifty years.

Containerization enables door-to-door, efficient and seamless movement of cargo, which has transformed global trade. The growing international trade has impacted the size of the ship as well.

Initially container ships had the capacity of about 480 TEU (Twenty foot equivalent units=Twenty foot long containers).

First panamax size containerships, having capacity of 1000 TEU to 2500 TEU [now upto 5000 teu] were built in early 1970s.

The capacity crossed 4000 TEU in 1980s and were further improved to 6000 TEU at the beginning of twenty first century.

This increasing size puts tremendous pressure on ports to improve their infrastructure facilities, services and labour practices for better delivery to face competition in age of globalization.

BUILT NAME MAXIMUM TEU

2013 MÆRSK MC-KINNEY MØLLER 18,270

2012 CMA CGM MARCO POLO 16,020

2006 EMMA MÆRSK 15,200–15,550

2009 MSC DANIT 14,000

BOX 12.2: SHIP - BIGGER THE BETTER

CONTAINER SHIP SIZE CATEGORIES

NAMECAPACITY

(TEU)LENGTH BEAM DRAFT

ULTRA LARGE CONTAINER VESSEL (ULCV)

14,501 AND HIGHER

1,200 FT (366 M) AND LONGER

160.7 FT (49 M) AND WIDER

49.9 FT (15.2 M) AND DEEPER

NEW PANAMAX

10,000–14,5001,200 FT (366 M)

160.7 FT (49 M)

49.9 FT (15.2 M)

POST PANAMAX

5,101–10,000

PANAMAX 3,001 – 5,100 965 FT (294.13 M)

106 FT (32.31 M)

39.5 FT (12.04 M)

FEEDERMAX 2,001 – 3,000

FEEDER 1,001 – 2,000

SMALL FEEDER

UP TO 1,000

BOX 12.2: SHIP - BIGGER THE BETTER

PANAMAX vessel is limited by the Panama canal's lock chambers, which can accommodate ships with a beam of up to 32.31 m, a length overall of up to 294.13 m, and a draft of up to 12.04 m.

BOX 12.3: VALUE ADDING SERVICES AT

PORT ‘Partnership with the port’ is a new concept initiating a

synergy between users and port establishments : ‘Port authorities offer value adding services to their key clients’.

These value adding services are apart from conventional services like marine related, port structure related and land access related which are generally provided by port authorities.

Jebel Ali Port, Dubai, offers a large free-zone to tenants to import and assemble intermediate products into final products .

Port of Rotterdam provides logistics centre facility to Reebok for consolidating its warehousing and distribution activities in europe. Former gets dedicated clientele and later benefits from cost effective logistics. Local government is benefitted by additional employment generation and wealth creation.

However such relations depends upon efficient port operations, strategic location, good connectivity with hinterland, port labour productivity etc.

BOX 12.4: PORT LABOUR PRODUCTIVITY

Ports in developing countries as well as some developed countries suffer from overstaffing.

Labour regimes, collective agreements with the management, and labour practices are inflexible, outdated and inefficient in all state owned ports.

Strong unions, often protected from competition of outsourced labour, develop great bargaining power due to political interference which hinders efficient operations at port, reducing overall productivity.

New manglore port, cargo handling workers have only 13 days work but get wages for 27.5 days constituting 100% surplus labour.

Kolkata port uses gangs of 28 workers for container handling as against 15 workers in mumbai port while at jawaharlal nehru port same task is successfully performed by gangs of for workers only.

Labour Reforms required :- Modernization and adoption of high-tech equipment in port

operations on priority basis. Modernization focusing skill development and change in

workers’ job description. Monolithic pay structure be substituted by piece-based pay

structure i.e. incentive based pay schemes for labour. Labour monopolistic practices must be undone by allowing

outsourced labour by private operators for efficiency. Promoting competition. Instituting legal reforms by revisiting archaic labour laws

and regulations. Relaxing labour norms for high skilled jobs in port sector.

BOX 12.4: PORT LABOUR PRODUCTIVITY

BOX 12.5: PORT COSTS

In early times port-related costs were insignificant in comparison with total ocean transport costs.

Presently, port costs are to be gauged in relation to its ‘percentage’ to the delivered price.

For high value: low volume commodities like electronic goods port costs can be less than one percent of the delivered market value.

For low value: for heavyweight commodities, port costs can be fifteen percent of the delivered market value.

In the total logistics chain of ocean transport, port cost is considered among more controllable expenditure.

THANK YOU

Questions Please!

?