+ All Categories
Home > Documents > Sooryash Final Report Shashi

Sooryash Final Report Shashi

Date post: 10-Apr-2015
Category:
Upload: shashi-dhar
View: 68 times
Download: 2 times
Share this document with a friend
78
CHAPTER 1: INTRODUCTION 1.1 General Introduction The maritime fleet of the Islamic Republic of Iran Shipping Lines (IRISL Group) comprises 115 ocean-going vessels with the total capacity of 3.3 million tons deadweight (DWT). The ownership structure of the fleet comprises 87 ocean-going vessels in IRISL and 28 different types of ships under the flag of subsidiaries, including Khazar Shipping, Valfajr as well as Iran-India Shipping Companies. They are manned by 6,000 Iranian personnel including shore staff, masters, deck and engine officers as well as ratings, who work under the flag of the Islamic Republic of Iran in the Caspian Sea, Persian Gulf, international waters and various ports of the world. 1
Transcript
Page 1: Sooryash Final Report Shashi

CHAPTER 1: INTRODUCTION

1.1General Introduction

The maritime fleet of the Islamic Republic of Iran Shipping Lines (IRISL Group) comprises

115 ocean-going vessels with the total capacity of 3.3 million  tons deadweight (DWT). The

ownership structure of the fleet comprises 87 ocean-going vessels in IRISL and 28 different

types of ships under the flag of subsidiaries, including Khazar Shipping, Valfajr as well as Iran-

India Shipping Companies. They are manned by 6,000 Iranian personnel including shore staff,

masters, deck and engine officers as well as ratings, who work under the flag of the Islamic

Republic of Iran in the Caspian Sea, Persian Gulf, international waters and various ports of the

world.

1.2 Objectives of the study

1. Understanding the concept of Shahid Rajaee Port with respect to competitors.

2. Working process of different department.

3. Relationship between employees and employers.

4. Traders approach towards Shahid Rajaee Port

.5. Developing and maintaining excellent communication throughout all sectors of the industry.

6. SWOT analysis of entire organization

1

Page 2: Sooryash Final Report Shashi

7. Understanding various Policies & Procedures of organization

8. Understanding Intra Trade and international trade activity of Shahid Rajaee

9. Interacting with various departments of organization

10. Understanding various structures of different department

1.3 Industrial Background of the Study

1.3.a Origin of the Industry

Due to the increase in the volume of imports into Iran since early 1960, consequence of which

was to employ many foreign flag vessels to trade within Iranian ports caused some concerns to

the country. In addition, the need and importance of a regular carriage of goods by sea and

considering peculiar geographical characteristic, accessibility to open seas, with having had long

water boundary and water ways to and from Iran made the necessity in initiating a research study

to establish the first and biggest integrated national shipping lines. The result of the research

study, which was started in 1961, was approved by the first general assembly meeting to

establish Iranian National Shipping Company on August 1967 with the name of Aria Shipping

Lines.

Aria Shipping started its activity in 1967 by two small size vessels with capacity of 1000 and

1550 tones in Persian Gulf area and 4 ocean going vessels, namely, Aria Sep, Aria Far, Aria Naz

and Aria Gaam with the total capacity of 61,252 tones that had been put into service between the

Persian gulf-Europe, Asia and America. By the end of 1978 the number of Aria shipping vessels

was 42 with the total capacity of 525,000 DWT which proved the increasing of the sea

transportation volume by Aria shipping lines and its effective role in Iran economy.

2

Page 3: Sooryash Final Report Shashi

After the Islamic Revolution and change of economical and political policy on January 5, 1979,

the authority renamed the Aria Shipping to Islamic Republic of Iran Shipping Lines (IRISL) and

affiliated the company to the ministry of commerce.

During the Iran Iraq War, numerous vessels such as Aria Boom, Aria Jahan, Aria Shaad, Aria

Omid, became total losses due to missile attacks, as a result of which, the IRISL suffered dearly.

After this period, the names of all the vessels were changed to those of martyrs and cities - with

the prefix "IRAN".

However since American sanctions (over Iran's support for various groups and Peaceful nuclear

program) have begun to hinder IRISL has taken to quickly renaming its ships under shell

companies in order to continue trading in banned goods

The International Maritime Organization has 140 member states with Iran ranking among the top

20. Iran plans to add 16 cargo ships to its naval fleet by mid-March 2010 to increase the total

capacity to 5.8 million deadweight tons. The number of cargo ships in 2009 has reached 154,

from 138 in 2008.

IRISL Fleet (2009)

Type of Vessel No. of Vessels Capacity DWT Capacity TEU

Bulk Carrier 46 2,299,749 -

Container Carrier 11 409,194 30,848

General Cargo Carrier 15 272,192 5,233

Multi Purpose Carrier 15 349,086 8,127

3

Page 4: Sooryash Final Report Shashi

Tanker 3 119,676 -

Total: 90 3,449,897 44,208

1.3.b Growth and Development of the Industry

Negotiations for building six 75,000 DWT Panamax bulk carriers and 10 Handymax bulk

carriers with the capacity of 53,000 DWT have been finalized with Iran Shipbuilding & Offshore

Industries Complex Co. (ISOICO) and SADRA shipyards respectively and if the prices are

finalized, total value of contracts signed with domestic shipyards will surpass $600 million.

To support domestic industries, manufacturing containers inside the country has been

encouraged. The first such contract, worth $10 million, was signed in 2001. It called for the

production of 5,000 Twenty-foot equivalent units (TEU) worth of containers and, so far, 1,600

containers have been delivered. As per IRISL's director, Iran needs to purchase or build 40

vessels by 2009. Over the next two decades, Iran would also need 500 new ships, including 120

oil tankers, 40 liquefied natural gas (LNG) carriers and over 300 commercial vessels. In 2009, in

a move aimed at further enhancing Iran's shipbuilding industry, President Mahmoud

Ahmadinejad said he will ban the purchase of foreign ships by Iranian organizations. Moreover,

various kinds of industrial lubricants have been produced by Pars Oil Company as well as

Behran Oil and, at present, about 70% of the lubricant needed by the fleet is supplied

domestically.

In October 2006, a new company has been established in the southern port city of Bandar Abbas

to repair various types of ocean liners. According to ISNA, the Bandar Abbas Pars Ship

Repairing Company has been formed jointly by IRISL and ISOICO. The plant has the capacity

to carry out maintenance works on large vessels with 500,000-ton capacity.4

Page 5: Sooryash Final Report Shashi

In addition, profitability of the company has been on the rise despite elimination of state

subsidies as a result of adopting a cost management, planned maintenance strategy, so that, the

company’s net loss which amounted to $15 million in 1999 has been turned around to more than

$150 million profits during the 2003-2004 fiscal year. According to the article 44(C) of the

Iranian Constitution, IRISL is ready for privatization.

Shahid Rajaei Port has hiked 10 spots in world ports rankings thanks to careful planning and

efficient services rendered by the port, Director General of Hormuzgan's Ports and Shipping

Organization Ali Akbar Safaei said on Sunday.

"This spring, 608,371 twenty-foot equivalent units (TEU) container ships unloaded at Shahid

Rajaei Port, which marks a 31 percent increase compared to the corresponding figure of 2009-

2010. Given the comprehensive plans which have been made at this port, we hope that this

increasing trend continues and by the year's end the record high figure of 2.8 million TEU

container ships will be accomplished," he added, Mehr News Agency reported.

The twenty-foot equivalent unit or TEU is an inexact unit of cargo capacity often used to

describe the capacity of container ships and container terminals. It is based on the volume of a

20-foot long intermodal container, a standard-sized metal box which can be easily transferred

between different modes of transportation, such as ships, trains and trucks.

Safaei recalled that the level of unloading at the port during spring was over 17 million tons,

which marks a 17 percent rise compared to the previous year. "In the same time span, some

4.980 million tons of non-oil products were exported via the port, which marks a growth of 98

percent. In the corresponding period of 2009-2010 the figure stood at 2.509 million tons.

Moreover, in the same period imports of non-oil products via the port reached 4.511 million tons.

It should also be recalled that in the same duration transit of non-oil products via the port

increased by 74 percent and hit 494,911 tons," he noted.

5

Page 6: Sooryash Final Report Shashi

Safei said during the first quarter of 2010-2011, around 950,122 tons of cargo was transshipped

via Shahid Rajaei Port, marking a 46 percent increase compared to the corresponding period of

2009-2010. "In the period between March 21-June 21, some 6.183 million tons of oil products

were unloaded and loaded at this port, which shows a 12 percent reduction compared to the

corresponding period of the last year. Transit of oil products in the same time span stood at

58,492 tons, which reveals no changed compared to the respective period of 2009-2010,"

1.3.c Present Status of the Industry

The Ports and shipping organization is a government agency under the authority of the Ministry

of Roads and Transportation, with responsibility for supervising maritime trade and the operation

of commercial ports and shipping in Iranian waters.

Marine transport is greatly dependent on auxiliary capacities and facilities including ports, roads,

railroad and so on. Therefore, the port and shipping organization of Iran agreed to award

management contracts for operations of container terminals in Bandar Khorramshahr and Bandar

Imam Khomeini to a subsidiary of IRISL (IRISL Port) in 2004. In addition, according to an

agreement with the Islamic Republic of Iran Railways, a joint company was established to

launch an express container line from southern Iranian ports to major destinations inside the

country, as well as to CIS countries. These measures were in line with the long-term policy of

the government to develop the transit sector and activate North-South Transit Corridor. All port

terminals are currently run by private companies.

1.3.d Future of the Industry

6

Page 7: Sooryash Final Report Shashi

The facts and figures for this spring suggest that some 1.069 million tons of oil products were

imported via the port, which hints at a two percent decrease compared to the spring of last year.

Meanwhile, a port and shipping official said on Sunday Shahid Rajaei Port is the best choice for

rendering port-related services in the Persian Gulf. Over half a century has elapsed since this port

started its activities and today we are witness to its growth and development in various sectors

and the impact of this important port on gross national product (GNP) as the hub of economic

activities of the country. Shahid Rajaei Port should become the hub of port and shipping services

in the Persian Gulf while today we observe that ports such as Jebbel Ali are basic ports in the

Persian Gulf region. Shahid Rajaei Port is on the verge of becoming a third generation port of the

world. Third generation ports are ports in which the issue of commercial activities is at stake in

addition to unloading and loading cargo and producing goods, the port accounts for over 90

percent of unloading and loading of container vessels in the country.

To expedite the port development to become a third generation port, the issues of logistics,

commercial services and rendering services at suitable prices.

7

Page 8: Sooryash Final Report Shashi

CHAPTER 2: PROFILE OF THE ORZANIZATION

2.1 Origin of the Organization

Adibi – Hearis counsolers for the first time, moved many goods in Iran, considered the Shahid

Rajaie port, which is, in the complete design of Iran’s commercial ports. Administrative

operations of the Shahid Rajaie port were started as part of main and basic developmental

programs in 1975. The port started its activities again after revolution in 1981 and developed its

operations in the imposed war. The Shahid Rajaie port played an important role to supply Iran's

needs in the imposed war. The first terminal of the port was exploited and loading / evacuation

operations started in 1984.

The port construction was completed and a container terminal was made which is equipped to a

computer system in 1985. Buildings, storages, spaces and other terminals were constructed to

develop activities in 1986. The first related affairs to a whole development program of the port

were started in 2001. It causes to increase port spaces and goods displacement capacity from 1.5

million TEU to 6 million TEU. First phase of the port spaces development was started in 2004.

The first part of the container terminal was started in 2005 too.

With a view to description of port climatic condition, the statistic of year 43 of Bandar Abbas

erology station is utilized. Supplementary data related to climatic region is indicated in table 2-

1.In the main, the lack of glacial days and few rainfall are climatic basic specification of this

region. The average of water surface temperature in Persian gulf have oscillated in different

periods between 20 oC(Esfand/ February) and 32 oC (Mordad/ August) and the annual average

water surface temperature is measured within 27 oC. The saltiness of surface waters in close of

Persian Gulf inlet was almost 6/36 gram in liter and the maximum of saltiness in southern coasts

is within 41 gram in liter. The done studies regarding the erosion of steel candles in Persian gulf

(United Arab Emirates and Kuwait) is shown that moderately, erosion rate in flood division is

8

Page 9: Sooryash Final Report Shashi

14/0 millimeter annually and therefore, the mean of erosion in other division can be equivalent

with 7/0 millimeter in the year.

Shahid Rajaee Port complex situate in Hormozgan State in 23 kilometer of west of Bandar

Abbas. This port situate in 560 geographical longitude and 4' eastern and 270 geographical latitude

and 7' northern in north of Qeshm Island and Hormoz neck. Port complex has about 25 square

kilometers area that from this extent 5/7 square kilometers is patronage land for development

plans and use of private sector.

Shahid Rajaei port allocate maximum of depletion operation share/ goods loading to self in

Islamic Republic Iran. First port terminal has opened and depletion operation and loading to

acceptable extent has started since (August 1984), this port has played an important role and

growing in country ports system especially in relation to containerize operation.

Containerize terminal of Shahid Rajaei port as biggest and more advanced country containerize

9

Page 10: Sooryash Final Report Shashi

terminal with operations range of 2/1 million TEU in 2005 is port heart. Besides of containerize

operations, acceptable dimension of replacement operation of social goods (especially steel

products), dry material (Cereal and hematite), liquid material (Inedible oils) and petroleum

products fulfill in this port. In addition, port has limited activities in depletion base/ automotive

loading.

In recent years, ports and shipping organization for submit of future raising demand, has invested

about 600 American million dollars for expansion of Shahid Rajaei port which this capital will

be spent for build of a new and big containerize terminal (start date of phase 1 schedule in end of

year 2006). Development of big post - edge lands, build of new gates for port that it is a creation

of railway maneuver enclosure etc.

Shahid Rajaei Port complex situate in Hormozgan State in 23 kilometer of Bandar Abbas west.

Geographical condition of this area in 560 geographical longitude and 4' eastern and 270

geographical latitude and 7' northern has situated in north of Qeshm Island and Hormoz neck.

The space of this area is 25 square kilometer that further 5/7 square kilometer can add to that.

The enclosure of Shahid Rajaei port finites to anhydride arid lands and Keshar Mountains from

north and on all sides’ finites to channels which directed the floods of this desert. Having the

singular geographical condition, access to international open waters via Persian Gulf, connection

to road and rail international net, approaching to Kish open area, Qeshm and Persian Gulf area

ports, and use of installation and modern equipments, Shahid Rajaei port complex is converted to

strategic and singular place. In connection to sea condition, this port is in safeguard of Qeshm

Island and immune of long waves of Oman Sea and Persian Gulf.

Port situation

The Shahid Rajaie port was announced as a special economical region in 2/28/1997. Free regions

of Iran were made according to the note No.19 of the first program of development (1989-1993).

Some regions are announced as special economical regions based on the note No.25 of the

second program of development (1994-1999). Main purpose of special economical regions

10

Page 11: Sooryash Final Report Shashi

creation is economical development promotion of the region by investor companies for

unemployment reduction and technology transfer.

Regulations of special economical regions

Benefits special economical regions

Possibility of goods export without commercial

and custom duties to the special regionIt exists in the special region

To free of duties in order to facilitate

constructed goods import to Iran

It includes goods which are constructed in the

special region too

Possibility of transit and re export It doesn't exist in the special region

Selling and rent of landsIranian citizens can sell and rent lands but

foreign citizens just can rent lands

Possibility of investment and inner and outer

relationsIt is possible

To warrant exterior investment in order to

issue permit

The permit is issued according to regulations

and laws

Administrative regulations for permit issuanceIt is done according to regulations of the

special region

Affairs of foreign exchange, banking and

financial affairsIt is done according to Iran's regulation

Labor laws and regulation, social insurance It is done according to Iran's regulation

11

Page 12: Sooryash Final Report Shashi

about employment of foreign citizens

Retail sales It is permitted for Iranian and foreign citizens

Visa regulation for foreign citizens According to Iran's regulations

Furthermore, according to consultants, storekeeping tariff of the free region is different to the

port official tariff which is announced by the shipping and ports organization (refers to chapter

5). Storekeeping tariff (obsolete goods) of special economical regions is less than the port

common tariff and tariff discount is given after 45 days. All goods which have a lading to

destination of the free region or special commercial regions, are enjoyed this prerogative.

This law is approved in order to store governmental goods in the port cheaply. Due to budget

policies of government, some governmental companies import necessary goods wholesale. These

companies store goods in the port because of lack of storekeeping facilities. Thus, a cheap

storekeeping tariff is approved for ports which are protected by the special economical region.

According to consultant’s observations, the obsolete goods law affects the port situation a lot and

led to highest pause time of goods (especially containers) in the port. It causes to decreases the

port capacity too. Actually the port is got a big storage instead of a goods passage. Development

projects of the port and the especial economical region should be considered. On the other hand,

positive effects of special regulations on industries development and commercial activities have

not been seen yet.

Powers of the shipping and ports organization are limit in this regard because tariffs of special

economical and free regions are approved by super council. Anyway, the port's director general

is responsible of the especial commercial region.

12

Page 13: Sooryash Final Report Shashi

2.2 Growth and Development of the Organization

In past years, Shahid Rajaei port has witnessed continual growth in volume of displaced good. In

this relation, traffic of ships and traffic of truck and trains increase between port and inside of

country considerably. To Predict that this process will continue at a later.

Good volume Unit 2005 2009 2010

Cereal Ton 168،665 728،000 1،032،000

Dry material

(inedible)Ton 7،109،386 8،972،000 12،968،000

liquid material Ton 671،269 1،200،000 1،700،000

Steel products Ton 1،298،831 1،508،061 2،890،782

Other social goods Ton 1،256،451 1،144،388 840،517

Oil Ton 24،233،449 29،470،000 32،900،000

Containerize(unlike

of restituted)Box 569،395 1،446،333 2،774،035

Encysted goods Ton 1،391،820 1،547،551 2،268،701

Afloat type Unit 2005 2009 205

13

Page 14: Sooryash Final Report Shashi

Barge and Shore

planeNumber 618 677 779

Containerize ship Number 1038 1467 2111

carrier Ships of dry

material Number 756 966 1288

Carrier ship of

automotive(Ro Ro)Number 92 121 142

Passenger ship Number 1 0 0

Refrigerator ships Number 3 9 19

Miscellaneous

shipsNumber 44 46 49

Tank non- oil ships Number 76 96 127

tanker Number 508 561 592

Post- edge

trafficUnit 2005 2009 2015

Number of

truck in yearNumber 1،487،000 2،216،000 3،414،000

14

Page 15: Sooryash Final Report Shashi

With analogy of actual physical condition of Shahid Rajaei port and foresighted good growth,

have prospected that important capacity restrictions will disclose more in relation to

displacement of dry material and hematite in next year’s.

2.3 Vision, Mission and Goals of the Organization

Our missions;

By 50 years record in port and marine services, meet Port consent in different fields of

marine and port industry and also development new and modern science relates to port

activities and acquire confidence of shipping lines and consignees, all over the world.

Our visions;

Our consideration based upon achieving pioneer and top rank amount most companies in

marine and port business demands great and effective presence in international areas and

overseas projects all over the world.

Our values;

Our values could be deemed as honesty, trustworthy, liability, politeness, having good

manner of business, respectfulness, team work, enforce the regulations, attention to health

and convenience of staff and protect the nature and environment.

Goals of the Organization:

To manage port affairs and to increase capacity of the port and sea operations in Hormozgan

province.

To control affairs of coastal and commercial shipping in ports of Hormozgan

15

Page 16: Sooryash Final Report Shashi

To control commercial floats entrance to Hormozgan's ports, to increase floats safety and to

prevent sea pollutions.

To record float units, to issue operational and voyages permits and sailing certificates.

To perform evacuation, loading and storekeeping operations- port services, goods and

containers transportation in the port regions.

To supply installations for goods transit by sea paths to middle east and neighbor countries.

To supply necessary conditions to assign exploitation right of administrative and commercial

activities to private parts.

To collect port rights and dues, storekeeping and goods transfer wages in Hormozgan's ports.

To organize affairs of the special protected region or protected regions of Hormozgan.

To control evacuation and separation demands of goods.

To control operations of Hormozgan's ports and especial wharfs to increase efficiency.

To perform commercial models gradually

To control contractors operation in order to perform contents of signature contracts.

To investigate affairs of efficiency use of investments, to keep and repair equipments, floats

and port installations.

To investigate safety affairs and to protect goods

To perform policies, strategies, regulations and laws which they are related to current affairs

of the port, by the shipping and ports organization.

To advance acknowledgment and technical experiments of human resources in Hormozgan's

ports.

16

Page 17: Sooryash Final Report Shashi

2.4 Present status and Future of the Organization

Because the Shahid Rajaie port is near free water, it accesses to other parts of the world by

shipping ways of the Hormoz strait. To develop commercial and economical among Iran and

other countries, some sea transportation paths should be created from the Shahid Rajaie port to

south banks of Persian Gulf, African and Asia east countries. Now, the Shahid Rajaie port relates

to 80 international ports by sea. This port is done most commercial activities and goods transit to

Middle East countries. Some sea paths are:

Form Bandar Abbas to Sharjah (inner relations in Persian Gulf), From Bandar Abbas to Dubai

(relation with Europe, Asia and Amercia), from Bandar Abbas to Masghat , from Bandar Abbas

to Karachi and from Bandar Abbas to other ports of Iran. Figure 2-6 shows the port location

among other international ports.

The Shahid Rajaie port is connected to the network of Iran paths by some main paths. The most

important path which is ended to the port is the 1330 kilometer long path form Bandar Abbas-

Sirjan- Tehran. It is the shortest path from Bandar Abbas to Tehran. Distance of the Shahid

Rajaie port to Bandar Abbias is 23 kilometers. This path is situated between Bandar Abbas to

17

Page 18: Sooryash Final Report Shashi

Bandar Length. It was changed to a 4 ways highway last year. The accessibility path is the most

important way in Bandar Abbas which is extended from east to west. Table 2-6 shows location

of the Shahid Rajaie port among the Iran's highway network and the Asia highway system.

The Shahid Rajaie port is connected to the overall railway network by the 630 kilometer long

railway of Bafgh- Tehran. The railway is increased transportation and social- economical

activities. Most transportation of commercial buildings of the region is done by this rail network.

Table 2-7 shows location of the Shahid Rajaie port in the overall railway network. Among four

regions which are controlled by the protection building of environment, protected regions of

HARA, HARA TIAB and MINAB are the nearest places to the port. The HARA region is

considered as a protected region according to quadruple classification of the environment. This

region is put in the international sea list of Anzali conventions and Bio- Safari resources. There

is a high sensitivity about this region so all affairs should be done carefully in the port.

Accessible channel and also the extent of port basins and status of break waterها declares

suitable for port. For the new containerize terminal of Shahid Rajaei port, the model ship will

have length 400m. Therefore, you need to know for certain that the port condition among canals

and circuit basins dimensions and also the instruction level of ship leaders will be made possible

to accepting the ships with this extent. The problem have important completely, is the depth of

all inlet head and port enclosures. You need to know for certain that the depths are adequate for

all of predicted float.

18

Page 19: Sooryash Final Report Shashi

2.5 Organizational Structure and Organization Chart

Organizational Chart

19

Page 20: Sooryash Final Report Shashi

Space of the Shahid Rajaie port is about 25 KM which 7.5 KM of it, is support lands and are

considered to develop designs and use private parts. Main areas of the port are divided to 7

groups based on their activities:

1. terminals

2. buildings

3. storages

4. open areas

5. wharfs

6. wave breakers

7. inner communication paths

8.

Table (1-1). A review of the Shahid Rajaie port

Description Storages Area (sq meter) Comments

Terminals No. 1&2 5 43250Common goods and heavy parts of

industrial centers

Terminals No. 3&4 3 25950 Industrial, heavy and big parts

The terminal of dangerous

goods1 8650 Dangerous export and import goods

The transit terminal 1 5650 Common goods

The export terminal 2 17300 Non oil goods export

The container terminal 1 8650Distribution and transportation

stations of the Container CFS

20

Page 21: Sooryash Final Report Shashi

The terminal of oil liquids Raw materials and vegetable oil

The terminal of grain and non

mental mineral materials

Grains and non mental mineral

materials

Blue Print of the Port

21

Page 22: Sooryash Final Report Shashi

2.6 SWOT Analysis of the Organization

STRENGTHS:

Biggest Port in IRAN.

Good Airways & Railways Transportation

facilities to Port.

Huge Terminalsآ

Huge containers to store Goods

WEAKNESS:

Constructions delay

Poor HR Management

Weak Marketing of spaces

Periodical Change in Top Executives

OPPORTUNITIES:

Wide untapped clients

Increase in Port transportation

Privatization of Ports

Increasing Traffic

THREATS:

More Competition from other ports

Iran & Iraq War

Changing Government rules

Climatic Changes

22

Page 23: Sooryash Final Report Shashi

CHAPTER 3: DETAILED STUDY OF THE DEPARTMENT

Overview:

Increase the primitive efficiency

Increase the main efficiency Efficiency increase maximum

Management and equipment office

instruct the contractors and personnel/ equipments purchase/ and guideline’s equipments purchase

Management system of life cycle among preparation, supervision, preservation and organization

Transport of guideline equipments in private sector with make a loan instead of rent

Port tariff Increase tariff transparency namely, accessibility via internet, preparation of tariff book which include entire item and exposure of that English copy

Second structure precisely/omit of some cases(as, port law for good) and also decrease of exemptions

Tariff freedom for contractor for displacement rates of good/ warehousing tariff

Financial system Definition of cost center, and doing of cost centre calculation

Profit center calculation, encouragers of profit center for increase of efficiency, modern software’s utilization of data processing for example, SAP

Increase of ports financial freedom

Investment instruct the ports organization employees for move to project management and control of project management

More attention to operational aspects/ logistical planning by way of reclamation engineering division(big projects of terminal development are based on logistical/ information technology) and international knowledge utilization

Establish tenders dependent on EPC contracts/ BOT contract based on clear and explicit laws for assignment of contract to tender bidder

23

Page 24: Sooryash Final Report Shashi

Organizational structures

Renewal of organizational structure in port with integration of several offices and liabilities and create of new offices, decrease of strong hierarchical organization via aid/supervisory mechanisms

Start up second organization implication and move to task merely hosting

More freedom of port, displacement of central planning mechanism with management based on commercial stimulus’s in ports, inaugurate the port area upon universal society

Marketing Prevision of marketing office in organizational structure with suitable budget for that

Start up ports marketing at international level by help of instructed personnel and proper sources

Implementation of commercial port structure with economical action /operation

IT system Start up the system of call management/ preservation of central data between marketing offices and IT

Increase of systems integration in port area and also ports and central staff of ports and shipping organization

International Tender of IT systems, especially in relation to operation and preservation systems (for Shahid rajaei port access to proper system of containerize terminal....)

24

Page 25: Sooryash Final Report Shashi

3.1 Human Resource Department

Human resource Structure

The shipping and ports headquarter of Hormozgan which is controlled by the Shahid Rajaie port,

has 4 branches and some units and the director general manages them. The organizational chart

of headquarter and its main duties and organizational posts were approved by administrative

affairs and employment organization in 1999 and executed in 2001.

Main posts of port

Table (3-3). Main posts of Shahid Rajaie port

Designation Duties

25

Page 26: Sooryash Final Report Shashi

Director

general of

port

- To control subset units, to manage deputies and other authorities in order

to optimize administrative, financial, technical, operational, fire fighting

and guarding affairs

- To equip programs and to regulate duties among parts, offices and subset

units

- To issue necessary instructions in order to manage technical, financial,

administrative, sea and port operations

- To coordinate relevant activities to different departments

- To control sanctioned budget execution and costs of execution of

imparted and administrative designs

- To control propagation of transportation contracts of commercial goods

and shipping and to determine necessary strategies and suitable ways in

order to accelerate goods transportation and increase goods exchanges

- To control serviceable execution of common strategy of organization in

port and control of imparted instructions, bylaws, authorizations, circulars

and regulations execution

- Technical and operational, administrative and financial planning and to

guide port affairs based on sanctioned budget, economical and

organization strategies, common policy of government

26

Page 27: Sooryash Final Report Shashi

Deputy of

port and sea

operations

- To control in order to secure floats traffic and stopping in canals and side

wharfs

- To control operational affairs, operations of electrical, telecommunication

and networks posts in the sea and drought

- To control operations and training of ships guides in order to guide floats

from international water to side wharfs and their berths

- To control operations of loading/evacuation, storekeeping and goods

transportation, execution of evacuation/loading and shipping contracts

-

Safety organization of port

According to Iran regulations, the commercial and industrial centers including more than 25

employees obligates in creation of job health center. Safety and health centers in Iran ports has

established on these base. Safety and healthy centers of Shahid Rajaei port is one of financial and

official department subgroups and includes 10 personnel for presentation the services to port

employees. In close future, the fire fighting center also will become one of these office subsets.

The prime duty of this center consists of:

The job health and safety: healthy inspection and warehouses, installation and piers safety

and controlling the suitable utilization of individual safety instruments, completing the

healthy and safety checklists, controlling the contaminants, filling the accidents form and

analysis it.

27

Page 28: Sooryash Final Report Shashi

The environment health: controlling and studying several divisions, spray, emergency

services, presenting the medical services

Public health and instruction: presenting the solution for omitting the contaminant, informing

about the health and safety problems, instructing the safety and health problem.

For contrast and control of fire outbreak, 3 fire fighting station are at Shahid Rajaei port which

these are equipped to special machines and relevant equipment. These fire fighting stations

includes one central station, one station adjacent to gas pump and one station close to the

warehouse of chemical containers. In this port, fire fighting stations includes 130 conventional

and formal employees for presenting the services in 24 hours. Fire fighting office intends to will

divide in close futures. Sea division resolved that manages by the safety center of channel and

the dryness division by safety and health center.

3-8 – port safety

In some years ago, the importance of port safety observations has grown considerably, in voyage

world. For safety convulsive situation of the world that has indicated with great number of

terrorist attacks losses in all over the world to governmental and private installation, international

voyage organization has been adopted the actions for preservation purpose of such attacks. The

new conditions have been adopted in relation to sea security in diplomatic conference of

international voyage organization in December 2002. The SOLAS riders 74/78 (chapter xi-2)

and ISPS regulation executed in initial July 2004 that requires the adoption of complex set of

actions. According to regulation conditions, ISPS should be warranted by the whole ports have

commercial intercommunications with the ports ISPS certificate holder. Besides conformity with

international regulations, a port useful security organization includes other advantages as:

Keeping of port installation

Decreasing the damages due to good robbery

The better marketing reasoning

28

Page 29: Sooryash Final Report Shashi

Since doings the ISPS regulations, the security act origination develops and changes continually.

The aim of this act origination set the whole supply chain at international regulation framework

and creating the relevant supervision methods among performing these duties in civic release

process and port governmental controls.

In Iran and Shahid Rajaei port, the port safe guard is responsible of safe keeping and security.

Regulations and also obtained methods relevant to security affairs classify in more sensitive

information and consequently, it don’t give authority to advisor. Therefore, a decision is taken

that this subject will be discussed generally. On other hand, port security aspect has accepted as

an important condition for future commercialize of Shahid Rajaei port specially in relation to

executing the ISPS regulation. This parol more adjusts for containerize operation division, more

important commercial activity of Shahid Rajaei port, which even their importance will be

increased with the start of new containerize terminal work in close future. The lines of

international shipping and also international operators always concern intensely in utilization of

ISPS regulation especially in utilization time of Shahid Rajaei port as an important gate for

transition the goods and also main port for transshipping. In done converse with international

voyage organization, it clears that Iran and among Shahid Rajaei port is in list of countries which

has executed ISPS regulations (sanctioned laws design of port installation safe guard dated, 3

June 2004). Anyway, no external supervision has accomplished yet in relation to utilizing of

these standards or more important of it the claim of one member of international voyage

organization in relevant to none utilizing of standards in one country.

29

Page 30: Sooryash Final Report Shashi

3.2 Finance Department

Financial Structure

Financial affairs

Administrative office credits expenses revenues salary/ wage

Cash flow for choice

1 2 3 4 5 6 7 8 9

2007 2008 2009 2010 2011 2012 2013 2014 2015

4113 21547 42848 67850 74928 98398 120663 144506 168360

-5810 -4346 -2881 -1212 -572 465 1551 2688 3877

9923 25893 45659 69062 75500 97932 119113 141819 164482

-15100 -14019 - -

30

Page 31: Sooryash Final Report Shashi

15238 2434

28447

-15100-

14019

-

15238

-

243428447

-

517711874 30421 69062 73066 97932 119113 141819 192929

-5177 6697 37118 106180 179247 277179 396292 538111 731039

Conclusions of financial calculations

Index/variable Choice of design No.1 Choice of design No.2 Choice of design No.3

Rate of inner yield 35% 35% 75.5%

Present pure value in

15% (by dollars) 289 million dollars 289 million dollars 289 million dollars

Return period(by year) 1.4 1.4 4

Duties of the budget part are divided into 4 classifications:

To do necessary affairs which are related to suggested budget

To receive budget and allocate it

To control budget

To report budget to different parts of the port

31

Page 32: Sooryash Final Report Shashi

Funds unit

The funds unit is main base of accounting system and includes 4 parts:

To communicate with the ports organization in order to supply funds and permits

To supply funds and complete it

To supply reports for different parts of the port

Cost unit

Cost unit is one of subsets of financial affairs part. It is done following duties:

Contracts accounting

To control salaries, wages, benefits and employees missions and to issue accounting

documents

Activities of working capital

To supply documents of properties of input current

To issue other accounting documents

Salary and wage

Activities of salaries and wages are done in 4 stages:

To collect primitive information such as salaries, deductions and over time of employees

To insert above information into computers

To calculate wages and salaries

To supply the wages and salaries list

32

Page 33: Sooryash Final Report Shashi

Income unit

Earned incomes are divided into 4 classifications in the Shahid Rajaie port:

Income of sea operations

Income of port operations

Earned income of equipments rent

Earned income of miscellaneous services

Book keeping

Book keeping is another active unit in the accounting center of the port which is done following

duties:

Earned amounts of the port

Payments of the port

Activities of loads and liabilities

To insert data into computers

To control financial accounts (balance sheet, benefit, loss, liquidity)

Properties and storekeeping

The properties and storekeeping unit which is subset of the financial affairs part includes three

parts:

Properties unit

Storekeeping unit

Preparations unit

33

Page 34: Sooryash Final Report Shashi

A list of reevaluated properties of Shahid Rajaie port

Row Code Description Total price

1 2100 Land 5629845

2 2200 Wharfs, spaces, fences, installations 1605812

3 2300 Administrative buildings and storages 340930

4 2400 Ships, hurricane lamps, floats 726032

5 2500 Vehicles, machines, equipments 764218

6 2600 Telecommunication and administrative equipments 38751

7 2900 Research, port equipments and installations costs 384874

8 3100 Deposits 9420

Total 9499882

For preparing and exposing the financial statements, the shipping and ports organization

considers the useful life of properties. About properties, the organization of ports uses the

depreciation rate of falling value or direct line for accounting their depreciation rate that it

decreases with special rate. This accounting method of installation and equipment depreciation

has approved by financial affair organization of Iran and it corresponds with article 147 of direct

taxes regulations.

3.3 Marketing Department

Marketing Structure

34

Page 35: Sooryash Final Report Shashi

Ship tariff to coast for material and packing goods (Rial)

Good type Good tariff(ton/day)

sundries 24،000

Hardware 20،000

bag 40،000

Dry material 10،000

livestock 4،00035

Page 36: Sooryash Final Report Shashi

Cooling plant goods 48،000

Broken goods 48،000

Danger goods 80،000

Light automobiles 80،000

Amid heavy automobiles

160،000

Heavy automobiles 240،000

Source: the port organization, 2007, Noandishan design, 2007

Duties of non-container goods replacement for operation on land

non container goods replacement rate (Rial)

goods Replacement tariff rate(one ton/move)

Light good 30> tons sundries 36،000

hardware 32،000

bag 36،000

Heavy good 30-60 ton 120،000

61-120 ton 240،000

More than 120 ton 320،000

Dry material 8،000

Liquid material 4،000

36

Page 37: Sooryash Final Report Shashi

Live stoke 4،000

Cooling plant goods 24،000

Broken goods 24،000

Danger goods 80،000

Light automobiles(passenger car) 120،000

Mid heavy automobiles(van) 200،000

Heavy automobile(bus,truck) 400،000

Source: the port organization, 2007, Noandishan design, 200

The rate of non-container goods warehousing

The warehouse rate for non container goods (Rial)

Warehousing time

goods group

Day 1 until 10

From day 11 until 20

From

day 21until 30

From day 30 until 40

From day 41 until 50

After 50 day

Sundries good and bag in terms of ton in day

exempt 750 1،000 1،400 2،000 3،000

Hardware in terms of ton in day exempt 600 800 1،000 1،600 2،000

Every kind of carton and

boxed package in terms of

Weight of every package until 50

kiloexempt 200 300 400 700 800

Packages with the weigh of

exempt 600 900 1،200 1،800 2،400

37

Page 38: Sooryash Final Report Shashi

package in day

more than 50

Packages with the weigh of more than 50

exempt 600 900 1،200 1،800 2،400

Light automobile(passenger car) in terms of day

exempt12،000 16،000 20،000 24،000 32،000

Heavy and mid heavy automobile(truck, tractor, van, bus,

etc.) in terms of dayexempt 20،000 24،000 28،000 32،000 40،000

Source: the port organization, 2007, Noandishan design, 2007

The warehousing rate of containerize goods

The public tariff of container warehousing (export, import, transit, transship

to American dollar)

Warehousing time

20 foot 40 foot

Full Empty Full empty

First day to day 12

exempt exempt exempt exempt

From day11 to 30

4 2 8 4

From day 31 to 60

5/5 5/3 5/9 5

From day 61 to 90

7 4 11 6

38

Page 39: Sooryash Final Report Shashi

after day ninety one

10 5 14 7

Source: the port organization, 2007, Noandishan design, 2007

The operation of refrigerator containers (to dollar and Rial)

20 foot refrigerator containers in inclosure80،000

Rial10 dollar

Every 24

hour

40 foot refrigerator containers in inclosure 120،000 15 dollarEvery 24

hour

Source: the port organization, 2007, Noandishan design, 2007

3.4 Operations Department

Administrative building of terminal

An administrative building should have following facilities:

Working offices

Dining room

Toilet

Dressing room and bathroom

Coffee shop and gym

Terminal localization

Wharfs allocation

39

Page 40: Sooryash Final Report Shashi

The wharf No. 23 is allocated to eatable oil

Wharfs No. 21 and 22 are allocated to metal terminals

The Wharf No.20 and wharfs No.10-14 are allocated to movement of common goods

There is no wharf for common goods except above wharfs

Figure(11-4). Terminal of common goods

Wharf capacity

Table(11-14). Wharf capacity of common goods

Year 2006 2007 2010 2015

Average of impure use/ labor

group/in every shift

390 390 390 390

Maximize occupation rate of wharf 70% 70% 70% 70%

Numbers of working days in a year 360 360 360 360

Numbers of working shifts in a day 2 2 2 2

Numbers of wharf labors in every

ship

3 3 3 3

Numbers of wharfs 5 6 6 5

Capacity of available wharfs 2948400 3538080 3538080 2948400

Necessary capacity of wharfs 2561827 2513214 2483214 2889403

Occupation rate of wharf 50% 50% 49% 69%

40

Page 41: Sooryash Final Report Shashi

Storage capacity

Because the port was not presented exact information about spaces of storages,

below calculations are not correct completely.

Capacity of available storages include following items:

A 15 hectare covered storage

A 28 hectare open storage

Table(11-15). Storage necessities of common goods

Year 2006 2007 2010 2015

DevelopmentPresent

situations

To open ironware terminal,

to separate FIDER terminal,

to separate grains storage

To open

terminal

of dry

materials

Import To import common

goods by ton/ in a year3000556 2406258 2309056 2889403

Import portion of total

common goods72% 96% 97% 100%

Peak coefficient ½ 1/2 1/2 1/2

Average coefficient of

space storage

0.8 0.7 0.7 0.7

41

Page 42: Sooryash Final Report Shashi

Portion of open

storages75% 75% 75% 78%

Portion of covered

storages15% 15% 15% 15%

Pause time(day) 14 14 14 14

Export

Export of common

goods by ton1183704 106956 67954 0

Export portion of total

common goods28% 4% 3% 0%

Peak coefficient ½ 1/2 1/2 1/2

Average coefficient of

space storage5 0.7 0.7 0.7

Portion of open

storages85% 75% 75% 75%

Portion of covered

storages5% 15% 15% 15%

Pause time(day) 14 14 14 14

Need to storage space

Need to space of open, pure

storages (sq meter)143917 123939 117222 142491

Need to space of covered and pure

storages (sq meter)

26440 24788 23444 28498

42

Page 43: Sooryash Final Report Shashi

Pure exploitation from space of

open storages50% 50% 50% 50%

Pure exploitation from space of

covered storages65% 65% 65% 65%

Need to space of open and impure

storage287834 247879 234445 284982

Square meter

Need to space of open and impure

storage(sq meter)40677 38135 36068 43843

Use of storage space

Space of allocated , and impure

open storage(sq meter) 280000 260000 200000 200000

Numbers of covered storages 9 8 8 8

Total covered storages 19 19 12 12

Numbers of empty and covered

storages6 8 0 0

Numbers of covered storages of

iron ware0 1 2 2

Numbers of covered storages for

use of private units15 17 10 10

Average size of covered storages

(sq meter)9000 9000 9000 9000

43

Page 44: Sooryash Final Report Shashi

Use of space of open storages 51% 48% 59% 71%

Use of covered storages for

common goods50% 53% 50% 61%

Use of whole storages for private

units30% 25% 40% 49%

44

Page 45: Sooryash Final Report Shashi

CHAPTER 4: STUDY OF SPECIFIC MANAGEMENT PROBLEM

Problem:

Intervention by the Government in Replacing the Employee or Changing the Employee

Detail:

Mangement in the port are directly selected by Ministry of President, automatically the power of

appointing goes in the hands of Ministry people. So whenever the Ministry changes or the party

changes indirectly it will result on addition or deletion of employees.

Affect:

Whenever the employee as been removed or added, the consequence is indirectly on employees,

employees may have adjusted to old Top executives, may be more comfortable with old top

executives. When yhe new boss enters they may take time in adjusting, and the addition and

deletion may happen for no reason. In directly due to Government intervention problems are

faced by both management and employees.

If the employees are not comfortable working, adopting, changes, distraction and so on

automatically the productivity of company comes down, keeping in mind the fact the

management board should certain decision.

45

Page 46: Sooryash Final Report Shashi

CHAPTER 5: RECOMMENDATIONS AND CONCLUSION

Recommendations:

Port constructions process should be fastened.

Human Resource management should be managed well.

Marketing Channel should be improved.

Government intervention in addition of deletion of employees should be replaced with addition

and deletion directly by management based on performance.

Wide untapped markets should be exposed

Competition should be tackled by providing better facilities compared to other ports

Conclusion

The Shahid Rajaie port is the most important port in Iran because:

1. The port is main gate of entrance and exit of import and export goods in Iran.

2. Benefits of the port activities are supplied financial needs of the shipping and ports

organization.

3. The shipping and ports organization has been invested highest budget in order to develop

the Shahid Rajaie port in future.

4. Whole operations of the port will be increased in 2015 according to traffic anticipation of

the port.

46

Page 47: Sooryash Final Report Shashi

BIBLIOGRAPHY

Websites:

www.shahidragaee.ir

www.wikipedia.org

www.iransez.com

Books Referred:

Ports of IRAN

By Abdulla Nagim 2008 edition. Rui Publishers

Iran Development and Special Economic Zones

By Richard Nael 2009 edition Matrix publishers

Shahid Rajaee Financial statements

Shahid Rajaee Policies and regulation book

47

Page 48: Sooryash Final Report Shashi

48


Recommended