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CHAPTER – IV
PROFILE OF THE NEW MANGALORE PORT TRUST
AND WAREHOUSE MANAGEMENT
4.1. INTRODUCTION
The Mangalore Harbour Project was started in 1962 and completed
in May 1974. The New Mangalore Port was declared as the 9th Major Port
on 4th May 1974 and it was formally inaugurated by the Prime Minister of
India, Smt. Indira Gandhi on 11th January 1975. Till 31-03-1980, both the
project and the Port were centrally administered by the Government of
India. On 01-04-1980 the Port Trust Board was set up under the Major Port
Trusts Act, 1963 .Since then the Port has been functioning as the 9th Major
Port Trust and has fallen in line with other Major Port Trusts functioning in
the country.
4.2. VISION OF NMPT
To be a professional provider of Port Infrastructure and services of
world class standards.
4.3. MISSION OF NMPT
To become one of the leading Liquid and Multi-cargo Port in India
by adopting the State-of-the-Art Technology infrastructure and cargo
handling system, complying environmental, social, safety and security
standards.
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4.4. SALIENT FEATURES OF NMPT
Deepest inner harbour on the west coast with 15.40 mtrs. depth at the
entrance channel.
First among the Major Ports of India accredited with International Ship
& Port Security (ISPS) Code Certification and an ISO 9001-2000 Port.
Equipped with Vessel Traffic Management System (VTMS).
Easily accessible to 3 National Highways NH 13,17,48 – Konkan,
South Western and Southern Railway –Air Port.
Highest LPG handling Port in India.
4.5. SERVICES PROVIDED BY NMPT
The New Mangalore Port has been ever responsive to the changing
needs of maritime trade. The route to success is paved with adoption of
modern technology and providing quality services.
Immediate attendance to ships – Berth on arrival
Round-the-clock navigation and berthing and unberthing of ships.
Single window system.
Green channel delivery for Star Trading Houses.
Uninterrupted supply of Power.
Sufficient covered and open storage area near the berth for storage of
cargo.
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Ample open storage area inside the Security Compound Wall.
Separate Container Stack yard
Railway marshalling yard for handling Rail bound cargo
Updating of daily vessel position and containers in the ports home page.
Arrangements for supply of bunker and fresh water to vessels.
Embarkation and dis-embarkation of passengers and services connected
with cruise.
Modern Cruise Lounge
Fire fighting and Salvage operations.
Allotment of land to the Port Users for Storage of Cargo.
Security coverage.
4.6. STANDARDS MAINTAINED BY NMPT
Round the clock cargo operations
Round the clock delivery of FCL containers for factory de-stuffing
Refunds within 15 working days for vessel related claims and within 20
working days for cargo related claims.
Facility for Direct Delivery of cargoes from the hook point
Round the Clock receipt of Export Cargoes
Facility for in-house stuffing of containers.
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4.7. COMMITMENT OF NMPT
The NMPT’s Commitment and endeavor is to provide best services
to the satisfaction of the customers. Port users are our valued customers
and our partners in the growth of the port.
4.8. EXPECTATIONS OF NEW MANGALORE PORT USERS
Grievances shall be acknowledged immediately and reply will be
given within 60 days. Corruption related complaints received by the
Vigilance Department will be registered within 2 days and investigation
will be started immediately and report will be submitted to the competent
authority as early as possible depending on the nature of the complaint.
At New Mangalore Port minimum availability of equipment in each
working shift will be
At least 2 Reach Stackers of 45 Ton capacity each.
At least 1 No. Mobile Crane of 75 Ton capacity
At least 2 No. Forklift of 3 Ton capacity
At least 1 No. Shore Crane of 10 Ton Capacity
Issuances of laminated dock entry permit within 15 working days.
Issuance of Temporary lorry dock entry permit within two hours and
permanent lorry dock entry permit on same day.
Round the clock rendering of services by the experienced
staff/workers.
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Display of Identity Card by all the operational staff and officers.
Rendering of the vessel related bills within 5 working days of
vessels sailing
Acceptance of remittances electronically
Rendering of container related bills on 20th of every month.
Keeping the Port environmental friendly.
Keeping the Port user friendly.
Personalized attention to the vessel operations.
Safe storage of cargoes in the Port.
Round the clock supply of reefer plug points for reefer containers.
Round the clock watch & ward.
4.9. NMPT’S CUSTOMERS
Shipping Company/Steamer Agents
Importers/Exporters
Clearing & Forwarding Agents
Stevedores
Transporters
Container Agents
Logistic Service Provider
Internal Customer
All Employees
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Customer Communication:
Through Website (www.newmangalore-port.com)
Through brochures / Corporate CD’s
Interactive Committees (Interaction with Port Users through B.D.C.,
i.e. Business Development Cell)
Monthly Ports Operations Meeting
Daily Berthing Meeting etc.
4.10. DIFFERENT DEPARTMENTS OF NMPT AND ITS
FUNCTIONS
Being an ISO 9001: 2000 port, the New Mangalore Port strives to
provide efficient service to its customers through its specialized
departments/divisions. The main functions of the departments/divisions are
as follows:
i) Administration Department
The Administration Department looks after the general
administration, human resources development and management in New
Mangalore Port, conducting board meetings, Public Relation, all personnel
matters of Ministerial Staff and officers, training, co-ordination,
Implementation/promotion of Official Language Hindi monitoring court
cases in different courts and maintaining harmonious Industrial Relations.
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ii) Civil Engineering Department
Main functions and responsibilities of Civil Engineering Department
are construction and maintenance of wharves, transit sheds, various
buildings, roads including residential accommodations in the Port area and
the Management of Port estate. Dredging is also carried out by Civil
Engineering Department. The Water supply both for wharf and quarters of
NMPT is under the Civil Engineering Department. The planning and
development project in future construction is also with the Civil
Engineering Department.
iii) Mechanical Engineering Department
The Mechanical Engineering Department is responsible for the
procurement, operation, maintenance and disposal of mechanical and
electrical equipments of the Port. The wharf cranes, mobile cranes, Fork
Lift Trucks, Weigh Bridges, Diesel generator and other equipments are
regularly serviced and maintained to offer round the clock service to the
port users. Besides, the central stores division procures various spares and
consumables from time to time on need basis. Also, the unserviceable and
condemned machinery, machinery parts, vehicles and other related scrap
are disposed off through central stores. All Port vehicles are serviced and
repaired periodically to ensure availability throughout.
iv) Traffic Department
The main functions of Traffic Department are planning for the
vessels to be Berthed and the vessel movements. Planning for cargo /
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loading / unloading, operation of ship, transit operation, receipt and
delivery operation, yard / warehouse storage operation, railway operations
for the movement of cargoes. Some of the commercial functions of Traffic
Department are generating and furnishing data for collecting cargo related
charges like wharfage, equipment related charges, rental charges,
weighment charges, demurrage as well as documentation aspects. The
department takes care of marketing functions, Management Services, Dock
Safety units are working under the Traffic Manager.
Registered Cargo Handling Workers Administration Wing
Registered Cargo Handling Workers Administration Wing which
was under private pool Management was taken over by the Port on
15.03.1990. All the cargo handling workers are under the direct control of
Registered Cargo Handing Workers Administrative Wing. The Traffic
Manager of N.M.P.T. is the Administrative head of the R.C.H.W. Wing.
v) Marine Department
The main functions of Marine Department are general conservancy
and waterfront operations pertaining to Pilotage of ships of this Port and
ensure safety and look after fire fighting arrangements, providing tugs and
pilots for piloting vessels, maintain tugs and all floating crafts in a good
condition for service. Deputy Conservator is also responsible for crisis
management, VTMS & ISPS.
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vi) Finance Department
Important functions of Finance Department are general accounting,
revenue collection, establishment, contractual payments, cost analysis,
budgeting, auditing and advising to the Chief Executives regarding
financial matters. EDP unit is also functioning under this department.
vii) Medical Department
The Port Trust Hospital is extending medical facilities not only to
the Port employees/dock workers and their families but also to the CISF,
Resident Audit Office Staff and their families, Pensioner and also Coast
Guard, Radio Wind Observatory, Customs on payment basis and also
extending emergency treatment for outsiders. Some of the major/minor
surgeries are being carried out in the PTH Operation Theatre.
viii) Vigilance Department
A close monitoring is maintained by the Chief Vigilance Officer of
the Port Trust on the various activities of the Port where corrupt practices
are likely to be committed by the employees. All complaints received by
the Vigilance are promptly and properly investigated and action taken as
per rule. Port users / employees can submit complaints regarding misuse
of Port fund or corruption to the Chief Vigilance Officer. Vigilance
Department is also closely involved in system improvement to prevent
corruption in different areas.
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Redressal of Grievances
Chairman of the Port Trust is available to general public, Port Users
and Employees on working Wednesdays to receive complaints. They can
also contact the Chairman, Deputy Chairman and the Heads of Department
in order to get redressed their Complaints on any working days with prior
appointment. There is Public Grievances Redressal machinery functioning
in the port, Secretary, NMPT as its Director. Any public having grievances
can meet him on every Wednesday at 3.00 p.m. In this connection details
are displayed in the separate Notice Board at the entrance of the
Administration Building. The name and Telephone Numbers are as given
below:
Name Designation Office Residence
Shri P. Tamilvanan Chairman 2407300 2407200
Shri C. Harichandran Secretary 2407438 2407141
Shri D.V. Ananth FA&CAO 2407353 2407425
Shri S. Gopalakrishna Traffic Manager 2407440 2408263
Capt. Pradeep Mohanty Dy. Conservator i/c. 2407419 2407696
Shri M.R. Hedaoo C.E. (Civil) 2407493 2407232
Shri Ivan Monterio C.M.E. 2408200 2456726
Shri Ahamed Ayub. B. C.V.O. 2408264 2407149
Dr. S. Sampath Kumar C.M.O. i/c. 2407948 2407536
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Time Bound Services to the Port Users
Processing of import/export application - within 2 days
Shipping dues, refund claims etc. - 30 days
Out-turn statement - 45 days from the sailing of
the vessel
4.11. NMPT’S SWOT
NMPT has a number of strong and weak points in terms of its
position in the Indian and international port facility and service markets.
Furthermore, NMPT faces a number of opportunities and threats.
Strength of NMPT
In the Arabian Sea basin the port of New Mangalore is ideally
positioned to the logistics service industry and its customer base for a
number of reasons.
The port is best suited to cater for South Indian cargo flows that
originate or destined for the States of Karnataka and partly for Kerala.
The hinterland consists of substantial population and a variety of
industries such as the garment producing industry, mineral ore
production, thermal power plants, electronic equipment and consumer
goods like coffee and refrigerated cargoes.
With a hinterland area of over about 50 min inhabitants NMPT has a
sound base to handle a substantial volume of containers for both
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imports and exports. Distances by road or by rail to major neighbouring
ports are at least 250 km, which supports shippers of goods to choose
New Mangalore based on origin-destination cost of transport.
The port is equipped with well-maintained deep-water berths up to 15.1
mcd depth and is operational except on three national holidays.
However shipping activities (berthing / deberthing) are being carried
out even on these three national holidays; it operates 24 hours per day
and can provide facilities for almost all cargo types.
Back up area is in general sufficiently available. This area allows
provisional storage and handling operations to be executed or to be
established.
The NMPT enjoys a healthy financial position in both balance sheets
and profitability.
Weaknesses of NMPT
Its marine infrastructure is designed to allow ships of maximum Length
Over All (LOA) 245 m. This implies in general that ships over Dead
Weight Tonnage (DWT) 100,000 cannot be handled in port due to
navigational constraints and the channel depth and width.
Cargo handling for certain dry bulk cargoes (iron ore, coal) are still
done manually which results in high Turn Around Time (TRT) for
ships. This creates subsequently high cost of transport to shippers of
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goods. The manual handling also results in unsafe and environment
unfriendly effects such as cargo spills and dust.
For existing terminals the NMPT is required, by agreements to deploy
the Port’s dock labour only to cargo handling operations (ship-shore).
This restricts the NMPT to enter into contracts with private operators
that manage a NMPT terminal with their own labour force fully and this
may lead to higher labour cost compared to that in minor/private Indian
ports that are at liberty to employ and manage labour.
Other weak points include the environmental hazards from dust and
spills and rather administrative authority structure (valid for all Major
Indian ports) that restrict the management and the Board of Trustees in
setting up its own (market oriented) port tariffs and service packages for
staff.
The port connectivity seems sufficient at present but the connectivity to
National Highways is in a poor state, heavily congested and sometimes
not suitable for heavy truck traffic. The port enjoys a railway
connection to a marshalling yard, but there are no direct railway lines to
any berth.
Opportunities of NMPT
NMPT has ample opportunities to increase its throughput and improve
its functions. Some private (captive) customers show firm interest in
developing berths and jetties time is ripe for Public Private Partnership
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(PPP) deals. The partnerships will appear in all cargo types that are
presently handled.
The high volume of captive cargo creates a sound base of income to
NMPT and has resulted and will result in sound operating profits. This
automatically implies that funds become available for infrastructure
development preferably in cooperation with private investors and
operators of cargo handling.
The participation in the Special Purpose Vehicle (SPV) established to
develop the Mangalore’s Special Economic Zone (SEZ) creates further
opportunity to execute activities that benefit from tax incentives. Apart
from NMPT’s involvement, the SEZ will generate additional cargo
flows from nearby industrial and trading activities.
Threats of NMPT
NMPT faces through its institutional structure (a Port Trust under the
MOSRTH) the ever disturbing handicap of being a public controlled
enterprise. Many regulations limit the management to act as an
independent and professional company, such as the labour laws
(no retrenchment), the HR routines (promotion), and the labour
conditions (exceeding market levels).
Furthermore the international vessel size developments will create
additional financial burden of capital dredging and strengthening of
quay infrastructure.
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The port’s capacity can be improved by shifting cargo handling
technique to faster and safer mechanisation. This improvement may
however still be insufficient to cater for certain growth of cargo flows
beyond projected cargo flow volumes. This may result (again) in
handling capacity shortage for certain cargo types which may result in
either over-utilisation of berth(s) or additional waiting time for ships.
The port’s competence at present is short of certain skills (marketing,
IT, HR management) to cope with future rationalisation of activities
and promote and stimulate the port to the market.
The competition may not be very strong at present but other major and
minor ports also develop and will try to take a share of the competitive
cargo especially when logistics are favourable.
Ever continuing competition from nearby ports Cochin, Mormugao,
Chennai and non-major ports of Karnataka which may result in a
possible deterioration of tariffs.
The railway capacity of the main connecting lines (to Bangalore) may
prove insufficient in the medium and long run to handle all cargo to and
from the port, not in the least caused by the expected modal shift from
truck to rail.
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4.12. IMPORTANT PROJECTS OF NMPT
Project 1
The total investment on infra and superstructure for the mechanised
iron ore berth 14 is estimated at Rs 196.6 Cr which differs substantially
from the original NMDP plan (Table 0.3 and the later by NMPT revised
investment cost of Rs 133 Cr. The difference is caused by the different
assumptions in applied handling technology and cost estimates.
The project is generating an IRR of 32% for the private operator,
while the port can expect a very an IRR of 120%. Very significant
economic cost reductions are realised in terms of vessel time, which
benefits the customers. The project is financially and economically
attractive and is about to be awarded to one of the 4 tendering operators.
Project 2
The project is generating an IRR of 22.2% for the operator, on the
basis of the shadow revenue assumption. For NMPT the IRR is irrelevant
since hardly any investment is made. The net income per ton rises
marginally compared to the current situation, but the throughput increases
for no investment. The project frees up capacity on berths 2, 3, 6, 7 and 14,
which will be available for other cargoes. Significant cost reductions are
realised in terms of vessel time, which benefits the client. The location of
the projects is shown in Figure 4.1.
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Figure 4.1
Location of top Projects
Project 3
The upgrading of the container terminal at berth 1 and 2 generates a
positive income only if and when a “Mechanised Handling” or an all-in
stevedoring tariff is introduced. At the projected throughputs over the
investment period, a tariff of around Rs.700 per box would suffice to
generate a 12% IRR. Yet, international tariffs are considerably higher than
this level, and a tariff of Rs. 3,000 per box would generate an IRR of 45%.
The consultants advises to continue the upgrading and to gradually raise
handling tariffs up to market levels.
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Project 4
The berth number 13 oil jetty project is generating an IRR of 29%.
As throughput is increasing and insufficient capacity remains, utilisation of
the existing facilities will increase. This project can relieve that situation
and do so very profitably. Even if discounts are to be negotiated, the
project will remain profitable.
Further economic development of India requires an efficient
national transport system. The seaports are major components of that
system; the bulk of the imports and exports (about 95%) are entering and
leaving the country via its seaports. India has twelve major seaports and
185 minor seaports along a coastline of over 7,514 km. The twelve major
seaports, Kolkata, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin,
Cochin, New Mangalore, Mormugao, Jawaharlal Nehru, Mumbai and
Kandla handle about 75% of total Indian port traffic. The overall growth of
India’s port traffic is estimated at 10% per annum. Due to the foreseen
national economic development in the coming decades, a strong further
growth of the country’s port traffic can be expected.
4.13. IMPORTANT FEATURES OF NMPT:
Port Area:
Water Spread – 320 Acres (129 hectares)
Land Area – 2030 Acres (822 hectares)
Total – 2350 Acres (951.04 hectares)
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Table 4.1
Berth Particulars of NMPT
Sl. No.
Name of Berth Type of Berth Draught
(In Mts.)
Length (In
Mts.) DWT
1. Berth No.1 Gen. Cargo 7.00 125 4000
2. Berth No.2 Gen. Cargo 10.50 198 30000
3. Berth No.3 Gen. Cargo 10.30 198 30000
4. Berth No.4 Gen. Cargo/Liquid Ammonia/Phosphoric Acid 9.50 198 30000
5. Berth No.5 Gen. Cargo/Bulk Cement/ Edible Oil 9.50 198 30000
6. Berth No.6 Gen. Cargo 9.50 198 30000
7. Berth No.7 Gen. Cargo 9.50 198 30000
8. Berth No.8 Iron Ore/ Gen. Cargo 13.00 300 60000
9. Berth No.9 POL/LPG 10.50 330 45000
10. Berth No.10 Crude Oil/POL 14.00 320 120000
11. Berth No.11 Crude & POL 14.00 320 120000
12. Berth No.12 POL & Chemicals 12.50 320 50000
13. Berth No.13 Under Construction 12.00 275 35000
14. Berth No.14 Gen.Cargo/Iron Ore/Coal 14.00 350 85000 Floating crafts:
22.5 T Bollard Pull Tractor Tug (VSP) – 1 No.
32 T Bollard Pull Tug Tractor Tug (VSP) – 3 Nos.
50 T Bollard Pull Tractor Tug (VSP) – 1 No.
Pilot Launches – 3 Nos.
Mooring Launches – 5 Nos.
Survey Launch – 1 No.
Buoy Laying Tender cum Skimmer 50 T capacity – 1 No.
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Table 4.2
Cargo Handling Equipment of NMPT
S.No. Equipment Capacity Total
1. Wharf cranes 10 Tons 3 Nos.
2. Mobile cranes:
i) TIL- Grove-RT-880 75 Tons 1 No.
ii) Escorts Model 8100 10 Tons 1 No.
Pick & Carry hydraulic Crane
iii) Reach Stacker 40 Tons 2 Nos.
3. Forklift Trucks 3 Tons 2 Nos.
10 Tons 1 No.
Storage Spaces of NMPT
Table 4.3
Transit Sheds / Overflow Sheds of NMPT
Transit Sheds
Nos. Area Capacity
1 5574 Sq.mtrs. 10,000 MT
1 4380 Sq,mtrs. 8,000 MT
1 Overflow Sheds
1 4920 (41m x 120m) 8,830 MT
2 4380 Sq.m. each 8,000 MT
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Table 4.4
Covered Warehouses of NMPT
S.No. Owner Nos. Area Capacity 1. N.M.P.T. 2 2190 Sq.m. each 4000 MT each Workshop Godown 1 2600 Sq.m. each 6000 MT
2. C.W.C. 4 2190 sq.m. each 4000 MT each 3. Consolidated Coffee 1 2190 Sq.m. each 4000 MT 4. Coffee Board 1 2190 Sq.m. each 4000 MT 5. Aspinwal & Co. 1 2190 Sq.m. each 4000 MT
Table 4.5
Storage Tanks of NMPT
S. No. Owner/Operator Nos. Total
Capacity Liquid Stored
1. I.O.C. 25 1,22,452 KL Petroleum Products
2. I.M.C. 19 52,000 KL Chemicals/POL
3. I.P.W.C. 8 52,845 KL Molasses, Edible oil/POL
4. Universal Agro Exports 3 12,792 KL Edible oil
5. M.C.F. 1 10,000 T Liquid Ammonia
6. M.C.F. 2 16,000 T Phosphoric Acid
7. Mangalore Impex 6 17,000 T Edible Oil
8. Ultra Tech Cement 3 18,000 T Cement
Table 4.6
Open Stackyard of NMPT
S. No. Type Nos. Total
Capacity 1. Open stackyard with bitumen pavement 2 18164 Sq. m.
2. Open stackyard with bitumen pavement 1 11534 Sq. m.
3. Open Stackyard without bitumen pavement 2 19693 Sq. m.
4. Paved Yard for stacking containers 1 22680 sq.m.
5. Large Open Storage Area near the berths and railway marshalling yard area.
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An Oil Spill Contingency Plan is an important working document
that identifies the oil spill risks, the appropriate response strategies, the
resources required to submit a response and the training and exercises
necessary to ensure practicality and effectiveness of the plan. The purpose
of this document is to provide guidance for the Disaster Management
groups of the New Mangalore Port.
New Mangalore Port Trust
Off-site Emergency Plan
JOINT SECRETARY PORTS MINISTRY OF SHIPPING, RTH
OFF: 011 23711873; RES:011
CHAIRMAN/DY.CHAIRMAN OFF : 2407300 / 2407315 RES : 2407200 / 2407316 MOBILE : 9845121730 /
DISASTER MANAGEMENT
GROUP
PORT FIRE SERVICE
PH: 2407488
ACTION GROUP
S.P. (Addl) OFF:2220503
/2220505 RES: 2220504 / 06
EXPERTS
MUTUAL AID AGENCIES
DEPUTY COMMISSIONER
DAKSHINA KANNADA DISTRICT
OFF:2220588 RES:2220589
(EMERGENCY
COORDINATING OFFICER)
PRESS STATEMENT
SUPDT. OF POLICE
DAKSHINA KANNADA
DIST. OFF:2220503
DIST. MEDICAL OFFICER
OFF:2425138 / 9480015944
AMBULANCE : 102
STATE FIRE SERVICES
OFF:2423333 EMERGENCY:101
OTHER AGENCIES
CHIEF-EMERGENCY CONTROLLER
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Chief Emergency Controller: Chairman
(Alternate: Deputy Chairman)
Responsibilities
To inform the emergency coordinating officer through telephone.
To inform Joint Secretary (Ports) MOST about the emergency.
To inform nearest Police Station.
To instruct concerned department to guide emergency services
inside the boundary limits.
To inform Mutual Aid Agencies listed in the Contingency Plan.
To inform Experts listed in the Contingency Plan.
Gateway to World Markets
Abutting the Arabian Sea, nestled between the Netravati and Gurpur
rivers lays the quaint town of Mangalore. It has been historically a
shipbuilding centre. Being a strategic port it was always under conflict in
the past swarmed over by several varied dynasties. Chroniclers reveal that
vessels from Mangalore port touched the shores of Persia, Greece, Rome
etc. This clearly establishes Mangalore prominence in sea trade due to its
geographical proximity to important shipping routes. Lying south, the
Indian Ocean provides major sea routes connecting the Middle East,
Africa, and East Asia with Europe and the America.
The New Mangalore Port was declared as the 9th Major Port on 4th
May 1974 and was formally inaugurated on 11th January 1975. The
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provisions of Major Port Trusts Act, 1963 were extended to the New
Mangalore Port and a Port Trust Board was formed w.e.f. 1-4-1980. Over
the years the Port has grown from the level of handling less than a lakh
tonnes of cargo to 31.55 million tonnes handled during the year 2010-11.
The Port facilities provided are to face the growing challenges and
emerging needs of the 21st century.
Rail Network
The port provides a railway siding to Mangalore. The railway links
spread into the neighbouring states of Maharashtra, Kerala and Tamilnadu
besides the hinterland. The rail network extends to major industrial cities
like Chennai, Bangalore Coimbatore and Mumbai in addition to numerous
other commercially important cities.
The Hassan - Mangalore line has been converted into a broad gauge
capable of carrying more tonnage of cargo by rail and now the Port is fully
accessible to its hinterland. This broad gauge line made to connect
Bangalore from Manglore and Chennai via Bangalore route is shortened.
The Konkan Railway has given a great fillip to the port / rail interface and
thereby to industrial development in the adjoining regions and direct
connection to Goa and Mumbai.
Road network
The Port is connected with 3 National Highways. The national
highway NH17 passing near the Port. This highway stretches from Kochi
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113
to Mumbai linking many important cities and towns in its route. The NH
48 connects directly Mangalore to Bangalore and NH 13 Mangalore-
Sholapur. In addition to the above, four laning of NH from Bantwal to
Surathkal is nearing completion.
Commercial advantages of NMPT
Customer satisfaction is the corner stone around which all our
services are devised. It strives to give them a competitive edge, both today
and in the future.
The congestion free all weather port helps vessels to berth all
through the year.
A secured container yard prevent theft and pilferage and through the
single-window clearance and simplified documentation system cargoes
move in or out at speeds unmatched by any other port.
Table 4.7
Milestones of NMPT
Milestone Dates
Formation of Mangalore Harbour Project 21st Apr. 1962
Declaration of New Mangalore Port as Major Port 4th May 1974
First Ship, M.V.Satsumaru Berthed 10th Jun. 1974
Formal Inauguration of the Port With 3 General Cargo Berths 11th Jan. 1975
Oil Jetty (No.9) Commissioned 12th May 1975
Formation of Port Trust Board 1st Apr. 1980
Commissioning of Iron Ore Berth(Kiocl Jetty) 15th Aug. 1980
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Milestone Dates
Commissioning of Addl.Gen.Cargo Berth(No.5) 1st Feb. 1984
Commissioning of 2nd Addl. Berths(6&7) 7th Nov. 1989
Nmpt Became an Iso 9001:2008 Port 27th Oct. 2003 Nmpt Became the First Major Port In India Accredited With Isps 29th Nov. 2004
Deep Draft Multi Purpose General Cargo Berth Commissioned 14th Feb. 2006
Bio-Metric Attendance System For Cargo Handling Workers Implemented 1st Dec. 2006
Cruise Lounge Commissioned 11th April 2008
Nmpt Got Iso 14001:2004 Certification From Irqs 22nd Feb. 2011
Berth No. 15 Became Operational Dec. 2011
4.14. NMPT OFFERS THE FOLLOWING FACILITIES TO
SATISFY THE EXISTING PORT USERS AND ATTRACT
THE NEW CLIENTS
Quick Turn Round Time
Instant access to 3 National Highways
Instant access to Southern, South-western & Konkan Railways
Easy documentation system
Total computerised system
Concretised road net work system inside the port area
No shortage of gangs
Specialised in handling all type of cargo
Deep draft liquid/general cargo berths
Regular calling of Feeder/Mainline container vessels
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105 T capacity harbour moble cranes operated by private parties
Container Freight Station near the vicinity of the Port
Modern Cruise Lounge
Entire Port operation under CCTV coverage
Vessel Related Charges of NMPT
Table 4.8
Berth Hire charges for occupation of berths where wharf
cranes are not installed
Rate per hour or part thereof per GRT Classification of
the Vessel Foreign going vessel
(in US $/cents)
Coastal Vessel (in Rs.)
Vessel other than oil tanker
All vessels irrespective of GRT
0.17 cents subject to a minimum of US $ 6
0.045 subject to a minimum of
Rs.160.40
Table 4.9
Oil Tankers and Other vessels Rate per hour or part thereof per GRT Classification of the Vessel
Foreign going vessel (in US $/cents)
Coastal Vessel (in Rs.)
(i). Tankers / Oil tankers 0.25 cents subject to a minimum of US $ 4.95
0.067 subject to a minimum of Rs.132.30
(ii). Sailing vessels, Barges, Tugs(Vessels other than steamer and Tankers)
US $ 3.096 Per vessel / hour
82.75 Per vessel/hour
(iii). Fishing vessels/ trawlers US $ 0.495 Per vessel / hour
13.25 Per vessel / hour
(iv). Wooden rowing boat with or without auxiliary engines
US $ 0.24 Per vessel / hour
6.50 Per vessel / hour
(v). Double banking Whenever a vessel is double banked with other vessel occupying a berth, it will be charged 50% of the berth hire specified above.
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Mother Ships:
If the mother ships are berthed alongside a Wharf, all the charges as
applicable to other Merchant vessels shall be recoverable.
If anchored at outer anchorage, there will be no pilotage fees, berth hire,
mooring charges and tug hire charges
If anchored at inner anchorage, all applicable vessel related
charges excluding berth hire shall be recovered.
Lash Barges:
The berth hire charges shall be levied at the rate of Rs.12.05 per barge
per hour or part thereof for coastal vessel or US $ 0.45 per barge per
hour or part thereof for foreign going during the process of loading and
unloading of cargo.
When the barges wait at the safe fleeting area, they shall be charged at
Rs.4.00 per barge per hour or part thereof for coastal vessel or US $
0.15 per barge per hour or part thereof for a foreign going vessel.
The charges for towing of barge shall be according to the rate
prescribed for tugs or launches, as the case may be.
4.15. PRIORITY BERTHING OR OUSTING PRIORITY
For providing priority berthing to any vessel, a fee equivalent to
berth hire charges for single day (24 hours) or 75% of the berth hire
charges calculated for a total period of actual stay of the vessel at
the berth, whichever is higher, shall be charged.
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For providing ousting priority berthing to any vessel, a fee
equivalent to berth hire charges for single day (24 hours) or 100% of the
berth hire charges calculated for a total period of actual stay of the vessel
at the berth, whichever is higher, shall be charged.
The fee for according priority /ousting as indicated above shall be
charged from all vessels, except the following categories:
a) Vessels carrying cargo on account of the Ministry of Defence
b) Defence vessels coming on goodwill visits
c) Vessels hired for the purpose of Antartica expedition by the
Department of Ocean Development
d) Any other vessel for which special exemption has been granted
by the Ministry of Shipping
Berth Reservation
(i). A Shipping line requiring advance reservation for a container
ship should give its scheduled arrival of ships at least 3 months
in advance. In the case of other vessels, a minimum notice of 1
month should be given. The shipping line should also intimate
the expected stay of the ship at the berth at the time of asking
for berth reservation.
(ii). A berth reservation equal to berth hire charges for single day (24
hours) or 25% of the berth hire for the expected stay of the ship
at the berth, whichever is higher, will be charged.
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(iii). If the shipping line does not bring the ship at the pre-reserved
time, then the berth reservation fee paid in advance will be
forfeited.
(iv). Liner ships should arrive within 6 hours of the
commencement of the time reserved for the berths and non-
liner ships should arrive within 24 hours of the time indicated
for arrival of the ship.
Table 4.10
Detention charges of the Vessels in NMPT
Sl. No. Description
Foreign going vessel
(in US $)
Coastal vessel (in
Rs.)
(i).
For cancellation of a requisition for the
services of a Pilot with less than 2
hours notice for pilotage between 0600
hours to 1800 hours or with less than
6 hours notice for pilotage between
1800 hours and 0600 hours
75.00 2005.00
(ii).
For detention of Pilot by a Steamer for
more than 30 minutes beyond the
time or which the requisition was
made
(a). For 1st hour or part thereof
(b). For every subsequent hour or part
thereof.
37.50 31.25
1002.00 835.00
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Table 4.11
Wharfage Charges of NMPT Sl. No. Bulk Cargo of NMPT Unit Foreign
(in`) Coastal
(in`) 1. (a). Finished Fertilizers
MOP, Urea, DAP, NPK, CAN Ammonia Sulphate and any other Finished fertilizer MT 25.90 15.54
(b). Fertilizer Raw Materials Sulphate/ Rock phosphate MT 29.60 17.76
2. Food Grains and Food Products (a). Rice, Wheat, Maize, Pulses (bags/bulk) MT 29.60 17.76 (b). Sugar, Sugarcandy or Cube MT 29.60 17.76
3. P.O.L. (a). Motor spirit MT 51.80 51.80
1. No export cargo shall be admitted into the port premises without the
permission in writing of the authorised official of the port. Normally
export cargo for a vessel shall be admitted only after the vessel is
opened for export.
2. Wharfage shall be in addition to any charges towards rent for storage
of goods in the quays, warehouses, transit sheds or landing places of
the port of New Mangalore.
3. Request for amendment in import / export applications or documents
shall be accompanied by a fee of Rs.10/- which shall not be
refunded.
4. The cargo/container related charges for all coastal cargo/containers,
other than thermal coal, POL including crude oil, iron ore and iron
ore pellets, should not exceed 60% of the corresponding charges for
normal cargo/container related charges.
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Table 4.12
Storage Charges of NMPT
Rate per container Per day or part thereof Sl. No. Container Size
Foreign (in US $) Coastal (in Rs)
1. Upto 20’ 0.214 9.53
2. Above 20’ and upto 40’ 0.321 14.30
3. Above 40’ 0.428 19.07 1. One day free period shall be allowed on containers whether
landed/shipped either empty or stuffed.
2. Free period prescribed above excludes Customs notified holidays and
port’s non-working days.
3. The storage charges on abandoned FCL containers/shipper owned
containers shall be levied upto the date of receipt of intimation of
abandonment in writing or 75 days from the date of landing of
container, whichever is earlier subject to the following conditions:
(i). The consignee can issue a letter of abandonment at any time
(ii). If the consignee chooses not to issue such letter of abandonment,
the container Agent/MLO can also issue abandonment letter subject
to the condition that,
(a). the line shall resume custody of container alongwith cargo and
either take back it or remove it from the Port premises; and
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(b). the line shall pay all port charges accrued on the cargo and
container before resuming custody of the container.
(iii).The container Agent/MLO shall observe the necessary formalities and
bear the cost of transportation and destuffing. In case of their failure to
take such action within the stipulated period, the storage charge on
container shall be continued to be levied till such time all necessary
actions will be taken by the shipping lines for destuffing the cargo.
(iv).Where the container is seized/confiscated by the Custom Authorities
and the same cannot be destuffed within the prescribed time limit of
75 days, the storage charges will cease to apply from the date the
Custom orders for release of the cargo subject to lines observing the
necessary formalities and bearing the cost of transportation and
destuffing. Otherwise, seized/confiscated containers should be
removed by the line/consignee from the Port premises to the Customs
bonded area and in that case the storage charge shall cease to apply
from the date of such removal.
4. Storage charge on container shall not accrue for the period when the
NMPT is not in a position to deliver/ship container when requested by
the user.
5. If operational area is licensed on rental terms to users, storage charge
on containers/demurrage on cargo stored there shall not be levied again.
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4.16. DEMURRAGE
Exports
Demurrage at the rate of Rs.3.00 per wharfage unit and/or at Rs.3.00
per CBM per day for all cargo charged at Advalorem rate, shall be levied
after the expiry of the free days.
1. Free days
(i). Free days shall exclude the Customs holidays and Port’s non-
working days.
(ii). All cargo except salvaged goods (a) Twenty one days free days
(excluding Customs holiday and Port’s non-working days) from the
actual date of receipt of the goods in the transit area. (b) From the
date the vessel is berthed for working cargo to the date the vessel
completes loading.
(iii). For salvaged goods, three free days (excluding Customs holiday
and Port’s non-working days) from the date on which the goods
were actually salvaged.
2. Shut out cargo
(i). In the case of goods shut out from shipment and if removed outside,
in addition to the free days mentioned in Note 1, the working day
next to the date of completion of taking in of the exports by the
vessel will also be allowed as a free day.
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(ii). In the case of goods shut out by one vessel and subsequently
shipped by another vessel, the free days shall count from the date of
the first shut out, upto ten days excluding Customs holiday and
Port’s non-working days. The total free period, however, shall not
be more than 21days.
(iii). Cargo intended for export but not actually shipped will be allowed
free days upto only seven days excluding Customs holiday and
Port’s non-working days from the actual date of receipt of the
goods in the transit area.
3. Free Periods
In addition to the free days, prescribed above the periods, that is
periods during which goods are detained by the Collector of Customs for
examinations under Sub section (3) and (4) of Section 17 and for chemical
test under Section 144 of the Customs Act, 1962, other than the ordinary
processes or appraisement and certified by the Collector of Customs to be
not attributable to any fault or negligence on the part of the exporters, plus
one working day shall also be allowed as free period. The Customs
holidays shall also be treated as free periods in addition.
4. Congestion of Goods
If at any time the Port apprehends a serious congestion in the transit
sheds or other spaces allotted for the goods in transit to the detriment of the
rapid transit of goods through the Port, it may direct the owner or
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consignor or Agents of any specified goods to remove such goods from the
Port premises within a specified period. If the goods are not removed
within such period, Port may cause them to be removed and restacked in
any other place within the Port premises at the expense and the sole risk of
the owner or shipper/agents. Demurrage charges shall be levied on such
goods in accordance with the rate specified for demurrage on export cargo.
5. Transhipment of Goods
The free period shall be allowed for the transhipment cargo up to 28
days excluding Customs holiday and Port’s non-working days from the
date of receipt of the goods.
General Notes:
1. Demurrage charge on both import and export cargo shall not accrue for
the period when the NMPT is not in a position to deliver/ship cargo
when requested by the user.
2. If operational area is licenced on rental terms to users, demurrage
charge on cargo stored there shall not be levied again.
Imports
Demurrage charges at the following rates shall be levied in respect
of all goods left in the port’s transit sheds or open space after the expiry of
the free days and free periods till their delivery is effected.
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Sl. No.
Classification Unit Rate
1.
Goods lying in the Transit sheds or in the open transit space except on which the rate of wharfage dues is fixed for each or by number.
Per wharfage unit per day
(a) 1st week Rs.3.00
(b) 2nd
weekRs.5.00 (c) Succeeding period
Rs.7.00
2. Goods lying in the transit shed on which wharfage is charged on advalorem basis
Per CBM per day
(a) 1st week Rs.3.00 (b) 2nd weekRs.5.00 (c) Succeeding period
Rs.7.00
Special features of demurrage
1. Free days
(i). Free days prescribed below shall exclude Custom’s holidays and
Port’s non-working days.
(ii). Seven working days (excluding Customs holidays and Port’s non
working days) following the date of the complete discharge of the
goods from the vessel on to jetties, quays or wharves shall be
allowed as free period. When goods are landed from the vessel into
lighters, barges or other floating craft, the seven working days shall
be calculated from the date of complete discharge of goods from
the lighters, barges or other floating craft on the jetties, quays or
wharves.
(iii). In the case of salvaged goods, the free days shall be reckoned from
the day following the date of notification of salvage by the Receiver
or wrecks in the Official Gazette of Karnataka State.
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2. Free period :
The following free periods shall be allowed in addition to the free
days prescribed above:
(i). Periods during which the goods are detained by the Collector of
Customs for examination under sub-section (3) and (4) of section
144 of the Customs Act 1962 (152 of 1962), other than the ordinary
process of appraisement and certified by the Collector of Customs
to be not attributable to any fault or negligence on the part of
importers, plus one working day. The Customs holidays shall also
be treated as free periods in addition.
(ii). Periods during which the goods are detained by any public Health
Authority whether cleared or destroyed.
3. Survey of Goods
If the goods are detained for survey, then a period not exceeding
seven days excluding Customs holidays and Port’s non-working days, from
the date of completion of discharge from the vessel may be excluded while
calculating the demurrage charges provided the goods are removed within
twenty four hours after the completion of the survey.
4. Empty or partially empty packages.
Demurrage charges shall be payable on packages landed empty or
partially empty.
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5. Demurrage Charges on Sunday and Port Holidays
Once demurrage charges begin to accrue, no allowance shall be
made for Sundays and port holidays
6. Delivery of Goods
Goods shall not be delivered to owners or consignees unless all dues
leviable thereon, including demurrage charges are paid
7. Congestion of Goods
If at any time the Port apprehends a serious congestion in the
transit area which may affect rapid transit of goods through the Port, it
may direct the owners or consignees of any specified goods to remove
such goods from the port premises within a specified period.
8. If the goods are not removed within a specified period, the Port may
cause them to be removed and restacked in any other place within the
Port premises at the expense and the sole risk of the owner or
consignees. Goods so removed shall be charged demurrage charges at
the rates prescribed in the Schedule of Demurrage (Imports) at (c) in
Sl.No.1 or 2 whichever is applicable.
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Table 4.13
Operational performance of NMPT
Performance Indicators 2010-11
Total Traffic (In million tonnes) 31.55
No. of vessels handled 1097
Av. Pre-berthing delay (In days) 0.60
Av.Turn Round Time (In days) 2.71
Av.Parcel size (In tonnes) 31,623
Av. Output per berth day (In tonnes) 14,204
Av. Output per hook per shift (In tonnes) 1229
Traffic handled during March 2012
Import traffic during Mar. 2012 : 22.63 Lakh tonnes
Export traffic during Mar. 2012 : 9.12 Lakh tonnes
Total traffic during Mar. 2012 : 31.75 Lakh tonnes
Total traffic during 2011-12 : 329.41 Lakh tonnes
(upto Mar.2012)
Container traffic during Mar. 2012 : 3652 TEUs
Container traffic during 2011-12 : 45,009 TEUs (upto Mar.2012)
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Traffic handled at NMPT during 2011-12 v/s 2010-11
Table 4.14
Traffic at a Glance (In Lakh tonnes)
Sl. No Name of Commodity 2010-11 2011-12
A. IMPORTS
1 POL (IOC/BPCL) 4.98 4.46
2 Crude Oil (MRPL) 123.92 130.80
3 LPG 19.17 20.74
4 Fertilizer 7.83 8.04
5 Wooden Logs 1.87 2.96
6 Edible Oil 5.64 6.34
7 Coal 28.30 40.21
8 Liquid Ammonia 0.54 0.51
9 Phosphoric Acid 1.78 1.38
10 Cement (Mech) 2.43 2.53
11 Limestone 3.26 0.55
12 Containerised cargo 2.24 2.89
13 Others 4.87 15.43
Total(A) 210.66 236.84
B. EXPORTS
1 POL Products(MRPL) 67.43 66.43
2 Iron Ore Pellets 21.76 17.71
3 Iron Ore Fines 9.39 0.49
4 Granite stone 0.35 0.95
5 Containerised cargo 3.43 3.55
6 Others 2.48 3.43
TOTAL B 104.84 92.56
GRAND TOTAL:A+B: 315.50 329.41
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4.17. AN OVERVIEW OF WAREHOUSING
Indian warehousing sector is expected to grow from US$ 20 billion
in 2007-08 to about US$55 billion by 2010-11, growing at a rate of 35-40
per cent every year. (A report by real estate consultancy firm, Cushman
and Wakefield.)
The Country is pegged around 30 million MT in 2006, out of which
the total storage capacity contributed by State and Central Warehouses is
10.04 million MT and 19.7 million MT respectively. Three public sector
agencies are involved in building large-scale storage and warehousing
capacities in the country. These are the Food Corporation of India (FCI),
Central Warehousing Corporation (CWC) and 17 State Warehousing
Corporations (SWCs). While the FCI uses its warehouses mainly for
storing food grains, the storage capacities with CWC and SWCs are used
for the storage of food grains as well as other items. The FCI has the
largest agricultural warehousing systems with over 24.33 million tonnes
of storage capacity in over 1451 godowns located all over India. This
includes owned as well as hired warehouses. The CWC was founded in
1957 to provide logistics support to the agricultural sector. Currently, it
operates around 514 warehouses across the country with a storage capacity
of 10.27 million tonnes. Other than storage and handling, CWC also offers
services such as disinfestations, pest control, fumigation, clearing and
forwarding, handling and transportation, procurement and distribution.
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State Warehousing Corporations exist in 17 States to provide
storage facilities and pest control services for various agricultural
commodities belonging to farmers of that State. These warehouses work
under different Warehousing Acts enacted by the respective State
Governments.
Changing utilization trends of storage Capacity:-
The changing utilization trends indicate towards increasing storage
capacity demand from the industries and other businesses while the
demand from the forest and Government departments such as civil supplies
are decreasing.
Major Players:
Public sector
Food Corporation of India
Central Warehousing Corporation
State warehousing Corporation
Private sector
National Bulk handling corporation Ltd.
National collateral Management Services Ltd.
Warehouse is a storage facility that receives goods and products for
the eventual distribution to consumers or other businesses. A warehouse is
also called a distribution centre. Warehousing’s roots go back to the
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creation of granaries to store food ‘which was historically available for
purchase during times of famine. As European explorers began to create
shipping trade routes with other nations, warehouses grew in importance
for the storage of products and commodities from a far. Ports were the
major location for warehouses
As railroads began to expand travel and transportation, the creation
of rail depots for the storage of materials became necessary. In 1891 the
American warehousemen’s association was organized to challenge the
railroad companies’ control over freight depots.
World war II impacted warehousing in several ways, including the
need to increase the size of warehouses and the need for more mechnized
methods of storing and retrieving the products and materials. As mass
production grew throughout manufacturing, the needs of efficient and
effective warehousing capabilities grew with it. warehousing companies
are now striving to become simply storage facilities. They are transforming
themselves in the third party logistics providers” or “3PLS” that provide a
wide array of services and functions. In addition to packing and staging
facilities offer light manufacturing call centers, labeling and other non-
storage options. The warehousing industry is key component of the
marketing.
Now-a-days competition in warehousing has become extremely
light because business seek warehouse firms with extremely thin margins.
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Warehouse firms are succeeding by remaining flexible and investing in
technology. Today warehouses are operated in several ways. Public
warehousing involves the client paying a standard fee for the storage of
merchandise, private warehousing is storage and operations controlled
completely by a single manufacturer, leased warehousing is an option for
more stable inventory, contract warehousing clients pay fees regardless of
whether they are using the space or not; the space is always there for them
to use, however, contract and public warehouses receive goods and
products from a multitude of manufacturers and shippers.
Warehousing is of great importance to the fast developing
businesses of today. Warehouses are equipped with cranes, forklifts and
container trucks which are used in loading and unloading cargos.
Warehouses are also furnished with many security features such as
surveillance camera as well as burglar alarm. Important factors influencing
process efficiency in the warehousing environment are layout choices and
the policies by which work routines are controlled.
The principal element of warehousing is order processing which
generally refers to the work flow associated with delivering products
ordered by a customer to a shipping carrier. The main motive for
warehouses and distribution centers is to facilitate the movement of goods
from suppliers to customers while meeting the customers demand in a
timely and cost-effective manner.
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Warehousing also plays an important role from the supply chain
perspective. Despite all of the integration initiatives, supply chains will
never be so well co-ordinated that warehousing can be completely
eliminated. Warehouses are important for a supply chain because they
provide storage for raw materials, components, work in process, and
finished goods, operate as distribution and order fulfillment centers; and
perform localized and value added warehousing. The tradition role of
warehousing has been associated with holding products in stock, but in
modern days warehousing perform the following roles in a efficient
Manner.
Make-bulk consolidation centers consolidate customer orders
together into one delivery and gain transport economics.
In cross-dock centers, customer orders are satisfied from another
source and just pass through the facility.
Transshipment facilities are used to change transport from large
line-haul vehicles to smaller delivery vehicles.
Assembly facilities are the final configuration of the product to
individual customer requirements can take place.
Product, fulfillment centers responding directly to product orders
from the final consumer.
Returned goods debits, handling unwanted and damaged goods, as
well as goods returning under environmental legislation such as
product recovery and packaging waste.
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A number of these roles may be associated with the concept of value
added warehousing. The need for a warehousing occurs from the time
interval between the production and utilization of goods.
The following key features of warehousing which make it even
more very important in seaports are:
Warehousing is helpful in storing goods after the demand is less
than the supply along with helps you to release goods when the
interest exceeds the immediate production. It helps us to regulate
supply of goods and also stabilizing prices by harmonizing demand.
Warehouses help to protect the businessmen and their product from
various risks like the loss, fire, theft and damages of goods.
Storage of goods in warehouses is usually covered by insurable.
It provides facility for processing, blending, packing, grading etc of
goods to get sale.
Warehouses issue receipts to the owners for stored goods.
Banks provide loans against warehouse receipts. It is a good security
for bank loan.
In addition to the above Warehouses rendered the following services
to their clients are:
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Spot Stock
Under spot stocking a selected amount of a firm’s product line is
placed or “spot stocked” in a warehouse to fill customer orders during a
critical marketing period.
Assortment
An assortment warehouse stocks product combinations in
anticipation of customer orders. It may represent multiple products from
different manufacturers or special assortments as specified by customers.
Mixing
In a typical mixing situation truckloads of products are shipped from
manufacturing plants to warehouses. Each large shipment enjoys the lowest
possible transportation rate. Upon arrival at the mixing warehouse, factory
shipments, are unloaded and the desired combination of each product for
each customer or market is selected. When plants are geographically
separated, overall transportations charges and warehouse requirements can
be reduced by mixing.
Production support
Production support warehousing provides a steady supply of
components and materials to assembly plants. Safety stocks on items
purchased from outside vendors may be justified because of long read
times or significant variations in usage. The operation of a production
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support warehouse is to supply or “feel” processed materials, components,
and subassemblies into the assembly plant in an economic and timely
manner.
Market presence
The market presence factor is based on the perception or belief that
local warehouses can be more responsive to customer needs and offer
quicker delivery than more distant warehouses. The Local warehouse will
enhance market share and potentially increase profitability.
Warehouse operating principles
1. Design criteria
It addresses physical facility characteristics and product movements.
Three factors to be considered in the design process. They are
a) The number of storeys in the facility:
The ideal warehouse design is limited to a single storey so that
product does not have to be moved up and down.
b) Height utilization:
Regardless of facility size, the design should maximize the usage of
the available cubic space by allowing for the greatest use of height on each
floor. Most warehouses have 20 to 30 foot ceilings, although modern
automated and high-rise facilities can effectively use ceiling heights up to
100 feet. Through the use of racking or other hardware, it should be
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possible to store products up to the building’s ceiling. Maximum effective
warehouse height is limited by the safe lifting capabilities of materials-
handling equipment, such as forklifts.
c) Product flow
Product should be received at one end of the building stored in the
middle and then supplied from the other end. Straight line product flow
minimizes congestion and confusion.
2. Handling Technology
The second principle focuses on the effectiveness and efficiency of
material handing technology. This principle consists of movement
continuity and movement scale economics.
3. Storage plan
Warehouse design should consider product characteristics,
particularly those pertaining to volume, weight and storage, product
volume is the major concern when defining a warehouse storage plan. High
volume. Sales or through put product should e stored in a location that
minimizes the distance it is moved, such as near primary aisles and in low
storage racks. Such location minimized travel distance and the need for
extended lifting. Conversely low volume product can be assigned locations
that are distant from primary aisles or higher up in storage racks.
Similarly, the plan should include a specific strategy for products,
dependent on weight and storage characteristics. Relatively heavy items
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should be assigned to locations low to the ground to minimise the effort
and risk of heavy lifting.
Bulky or low-density products require extensive storage volume, so
open floor space or high. Level racks can be used for them. On the other
hand, smaller items may require storage shelves or drawers. The integrated
storage plan must consider and address the specific characteristics of each
product.
Categorization of warehouse activities
The basic function of a warehouse is to receive customer orders,
retrieve required items, and finally prepare and ship those items. There are
many ways to organize these operations but the overall process in most
warehouses shares the following common phases (Frazelle, 2002;
Rouwenhorst et al., 2000):
Receiving - the process of unloading, checking quality and
quantity, and dissembling or repacking items for storage
Putaway - defining the appropriate location for items and
transferring them to the specified storage location to wait for
demand
Order picking - retrieving items from their storage locations
and transporting them either to a sorting process or straight to the
shipping area
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Shipping - inspecting, packing, palletizing and loading items
into a carrier for further delivery
Out of these activities, receiving and putaway belong to the inbound
logistics process which means that they are concerned with the flow of
materials coming into the warehouse. Order picking and shipping, on the
other hand, belong to outbound logistics and are concerned with moving
materials out of the warehouse.
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Table 4.15
State-wise Storage Capacity of Warehouses in India
(As on 31.01.2007)
(Figures in Lakh MTs) Covered CAP
Hired Zone States / UTs FCI Owned State
Govt. CWC SWC
Private Parties
Total Hired
Total Covered
Owned Hired Total
Grand Total
Total Stocks
Utilisation (% )
Bihar 3.66 0.03 0.5 0.59 0.48 1.6 5.26 0 0 0 5.26 1.71 16
Jharkhand 0.66 0 0.11 0.18 0.23 0.25 1.18 0 0 0 1.18 0.56 33
Orissa 2.93 0 0.48 2.55 0.15 3.18 6.11 0 0 0 6.11 3.08 47
West Bengal 8.64 0.23 0.55 0 0.56 1.34 9.98 0 0 0 0.98 2.62 30
Sikkim 0.1 0.01 0 0 0 0.01 0.11 0 0 0 0.11 0.06 26
East
Total 15.99 0.27 1.64 3.32 1.42 6.65 22.64 0 0 0 22.64 8.03 56
Assam 1.99 0.02 0.1 0.07 0.37 0.56 2.55 0 0 0 2.55 0.8 35
Arunachal Pradesh 0.18 0 0 0 0 0 0.18 0 0 0 0.18 0.02 31
Meghalaya 0.14 0 0.11 0.05 0 0.16 0.3 0 0 0 0.3 0.2 11
Mizoram 0.17 0.01 0 0 0 0.01 0.18 0 0 0 0.18 0.09 90
Tripura 0.22 0.05 0.07 0 0 0.12 0.34 0 0 0 0.34 0.19 50
Manipur 0.2 0.02 0 0 0 0.02 0.22 0 0 0 0.22 0.05 56
North East
Nagaland 0.2 0 0.1 0 0 0.1 0.3 0 0 0 0.3 0.14 23
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Covered CAP
Hired Zone States / UTs FCI Owned State
Govt. CWC SWC
Private Parties
Total Hired
Total Covered
Owned Hired Total
Grand Total
Total Stocks
Utilisation (% )
Total 3.1 0.1 0.38 0.12 0.37 0.97 4.07 0 0 0 4.07 1.49 47
Delhi 3.36 0 0 0 0 0 3.36 0.34 0 0.34 3.7 1.18 27
Haryana 7.7 3.89 1.88 3.99 1 10.76 18.46 3.17 0 3.17 21.63 8.2 32
Himachal Pradesh 0.14 0.06 0.07 0 0 0.13 0.27 0 0 0 0.27 0.21 38
Jammu & Kashmir 0.96 0.15 0 0 0.1 0.25 1.21 0 0 0 1.21 0.78 78
Punjab 21.84 0.02 0.6 32.32 2.71 35.65 57.49 6.33 0.12 6.45 63.94 33.32 64
Chandigarh 0.4 0 0.41 0.21 0 0.62 1.02 0.08 0 0.08 1.1 0.8 52
Rajasthan 7.06 0 0.13 0 0.16 0.29 7.35 1.58 0.19 1.77 9.12 3.74 73
Uttarpradesh 14.96 0.09 1.82 4.04 0.2 6.15 21.11 4.19 0 4.19 25.3 5.8 41
Uttaranchal 0.66 0.1 0.23 0.43 0.05 0.81 1.47 0.09 0.02 0.11 1.58 0.71 23
North
Total 57.08 4.31 5.14 40.99 4.22 54.66 111.74 15.78 0.33 16.11 127.8 54.74 45
Andhra Pradesh 12.73 0 2.39 17.77 0 20.16 32.89 1.97 0 1.97 34.86 16.78 48
Kerala 5.12 0 0 0 0 0 5.12 0.21 0 0.21 5.33 2.21 41
Karnataka 3.73 0 0.38 0.44 0 0.82 4.55 1.37 0 1.37 5.92 2.17 37
South
Tamilnadu 5.83 0 0.8 0.33 0 1.13 6.96 0.6 0 0.6 7.56 4.52 65
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Covered CAP
Hired Zone States / UTs FCI Owned State
Govt. CWC SWC
Private Parties
Total Hired
Total Covered
Owned Hired Total
Grand Total
Total Stocks
Utilisation (% )
Pondicherry 0.42 0 0 0.02 0 0.02 0.44 0.08 0 0.08 0.52 0.19 37
Total 27.83 0 3.57 18.56 0 22.13 49.96 4.23 0 4.23 54.19 25.87 48
Gujarat 5 0.14 0.42 0 0 0.56 5.56 0.49 0 0.49 6.05 3.56 59
Maharashtra 11.77 0.26 0.75 0.96 0.49 2.46 14.23 1.42 0 1.42 15.65 5.46 35
Goa 0.15 0 0 0 0 0 0.15 0 0 0 0.15 0.05 33
Madhyapradesh 3.37 0 0.5 0.75 0.37 1.62 4.99 0.36 0 0.36 5.35 3.66 68
Chhattisgarh 5.12 0.03 0.26 1.97 0.05 1.31 6.43 0.05 8.57 8.62 15.05 12.93 86
South West
Total 25.41 0.43 1.93 2.68 0.91 5.95 31.36 2.32 8.57 10.89 42.25 25.66 61
India 129.41 5.11 12.66 65.67 6.92 90.36 219.77 22.33 8.9 312.3 251 115.79 46
Source: www.indiastat.com
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Warehouse resources
Typical issues involved in designing and performing warehouse
processes include allocating resources in terms of costs and capacity. When
looking at the value of a product or service, the goal is to have the value of
the end-product exceed the cost of producing it. Identifying the value
added activities inside the warehousing process is an essential but
demanding task. Basically, the value assessment is made by examining
each activity within the process and defining its criticality to operations.
The cost of the product or service includes all resources used to produce it
(e.g. raw materials, labour, storage space, transportation, equipment).
According to a classification by Rouwenhorst et al. (2000), it is possible to
identify the following list of distinguishable warehouse resources:
Storage units - Used for the storage of products e.g. pallets,
trays, boxes
Storage systems - May range from simple shelves up to
automated cranes and conveyors
Pick equipment - Used for the retrieval of items from the
storage system e.g. standard forklifts, reach trucks, pallet trucks
Auxiliaries - Equipment, such as barcode scanners, that support
warehouse activities
Computer systems - Enable computer control of processes
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Material handling equipment - Equipment for preparing
retrieved items e.g. sorter systems, palletizers, truck loaders
Personnel - Human resources that operate and control all of the
pre-described resources
Warehouse resources normally represent a sizeable capital
investment. Approximately 50 percent of the costs in a typical warehouse
are labour-related facilities; machinery and storage equipment represent
smaller portions of the investment (Aminoff et al., 2002). Reducing the
amount of labour or pursuing higher labour productivity can be seen as a
means to lowering warehouse operating costs. This is typically done by
investing in expensive warehouse technologies. However, to obtain an
acceptable rate of return on equipment investments, they must be selected
and used properly.
Warehouse technologies
Many developments in the warehouse efficiency have been made
possible due to the advances in warehouse technologies. It is useful to
think of warehouse technologies consisting of two elements. The first
element involves the use of computers for planning and directing activities.
The second is the degree of mechanization or automation. Naturally, the
goal of automating warehousing operations is to enhance efficiency of
material handling through reduction of labour costs and increased
throughput. The evolution of systems created for warehousing is not very
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146
different from many other technology solutions in the sense that most of
them are based on few core functionalities on top of which developers have
started to add small features that they have seen as valuable for
accomplishing specific tasks.
Hence, warehouses must be designed to accommodate the loads of
materials to be stored, the associated trucking in receiving and shipping
operations, and the needs of the operating personnel. The design of the
warehouse, space should be planned to best accommodate business service
requirements and the products to be stored and handled. The economics of
modern commercial warehouses also dictate that goods are processed in
minimal turn around time.
4.18. CONCLUSION
The profile of the NMPT’s vessel traffic and warehouse
management provides port user with high level of satisfaction through
rendering quick, economical, safe, reliable and efficient services. After
liberalisation period, the top management had concentrated to implement
special facilities to handle the vessel traffic efficiently. It also adopts a
progressive HR management policy through training and motivating by
educating and working conditions level for cargo handling workers / union.
The NMPT has been ever responsive to the changing needs of maritime
trade through practicing immediate attendance to ship berth on arrival.
Round the clock service is offered in the NMPT for all kinds of services at
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147
delivery of FCL containers, direct delivery of cargo from hook point and
receipt of export cargoes. But, it also possess certain weaknesses that its
infrastructure is designed to allow ships to maximise length overall (LOA)
245m. This implies in general that ships Over Dead Weight tonnage
(DWT) 1,00,000 cannot be handled in port due to navigational constraints
and the channel depth and width.
Cargo’s handling for certain dry bulk, cargoes (Iron ore and Coal)
are still done manually which results in high turn around time for ships.
This creates subsequently high cost of transport to shippers of goods. The
manual handling also results in unsafe and environment unfriendly effects
such as cargo spills and dust.
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