Introduction to Port & Shipping Management

Presented by
Dr. Bishal Dey Sarkar

PhD. (IIT-Delhi)
Mail_ID: bsarkar@gitam.edu
Phone No.: 7982948964
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INTRODUCTION

 A port is a maritime facility comprising one or more loading areas, where ships load/
unload cargo and passengers.
 Seaports are historic, commercial, and infrastructural assets that form the backbone of
nations and regional economy.
 Port and shipping are considered as the key factor for the development and economic
growth of a country.
 A port is not only a linkage between lea and land, it is an economic concept, it can
accommodate warehouses, logistics facilities, cities, and industrial complexes that serves
coastal and overseas traffic.
 Port is considered as a part of the total transportation network and a junction where it
meets with other modes of transport.
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PORT & SHIPPING WORLD VIEW

 Port Logistics is the term used to describe logistics and distribution services
based at the ports where goods arrive.
 As 80 percent of the world’s total trade is transferred by seaborne activities.
 The globalization of complex industrial production processes has increased
the importance of seaports in the global supply chain.
 There are around 6000 ships, actively operating in liner services for
transporting goods around the world.
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TOP 10 WORLD CONTAINER PORT

Rank Port 2018 2017 2016 2015

1 Shanghai, China 42.01 40.23 37.13 36.54
2 Singapore 36.60 33.67 30.90 30.92
3 Shenzhen, China 27.74 25.21 23.97 24.20
4 Ningbo-Zhoushan, China 26.35 24.61 21.60 20.63
5 Guangzhou Harbor, China 21.87 20.37 18.85 17.22
6 Busan, South Korea 21.66 20.49 19.85 19.45
7 Hong Kong, S.A.R, China 19.60 20.76 19.81 20.07
8 Qingdao, China 18.26 18.30 18.01 17.47
9 Tianjin, China 16.00 15.07 14.49 14.11
10 Jebel Ali, Dubai, UAE 14.95 15.37 15.73 15.60
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TOP 10 EXPORTERS AND IMPORTERS

Rank Exporter 2014 2013 Importer 2014 2013

1 China 36 34.2 United States 19.6 18.4
2 United States 11.9 11.5 China 14.7 14.4
3 South Korea 5.93 5.79 Japan 6.55 6.34
4 Japan 5.28 5.20 South Korea 5.09 4.80
5 Indonesia 4.00 3.59 Indonesia 3.17 3.13
6 Thailand 3.92 3.78 Germany 3.00 2.78
7 Germany 3.32 3.24 United Kingdom 2.64 2.42
8 Taiwan 3.25 3.24 Taiwan 2.53 2.42
9 India 3.07 2.95 Australia 2.52 2.45
10 Vietnam 2.94 2.63 Vietnam 2.47 2.19
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PORT & SHIPPING: INDIA VIEW

 India is having a coastline of 7500 km and 14500 km of navigable waterways spanning

over union territories and 13 maritime states.
 Port logistics has been an important component of the Indian economy, accounting for
more than 90% of Export/Import (EXIM) trade by volume and around 72% by value is
moved through maritime transportation.
 More than 1 billion tons of cargo was handled across 200 ports during the financial year
2015.
 Indian port sector has received an equity inflow of US 1.64 billion dollars between
April 2000 to June 2017
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STATISTICAL PROFILE OF 13 MAJOR PORTS IN INDIA

• India has 13 major ports and 200 non-major/minor ports.

Infrastructure Cargo Handling Equipment

• 20 percent of India’s
Number of berths Equipment Number
population lives in the Container 28 Locomotive 55
Coal 12 Tractors & Trailers 512
coastal areas. Fertilizers 5 Trucks & Reach stacker 132
• In recent years, cargo Iron ore 8 + 3 Transhippers Yard cranes (Container) 182
POL 47 + 2 BJs + 9 SBM Quay cranes (Container) 52
handled by Indian major General/Breakbulk 146 Wharf cranes 59
and non-major ports has Total 246 + 2 BJs + 9 SBM + 3 Transhippers Mobile cranes 33
Shovel dozer, Payloader, 24
doubled from 521 million Note: BJ= barge Jetty, SBM= Single Buoy Mooring Excavator, etc
tonnes in FY05 to 1072.47 Storage Labour Snapshot
million tonnes in FY16. Particulars Storage capacity
Employee strength (Nos.) 38559
Liquid storage (In KLs) 7,830,740
In-Ground slots 7,629 Cost per employee (in lakh) 7.58
In TEUs 4,125 Labour productivity** (in tonnes) 955
In tonnes 3,069,379 Lost at ports due to 17,174
In sqm 17,416,677 Work stoppage
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MAJOR PORTS IN INDIA

 India has 13 major ports located in
the eastern coastline and western
coastline of India.
 In FY16, major ports situated at
the east coast accounts for
handling 50 percent of the total
cargo traffic and recorded a year-
to-year growth of 4.2 percent,
while major ports situated at the
western coastline accounts for the
remaining 50 percent and recorded
a year-to-year growth of 4.4
percent.
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MAJOR PORTS IN INDIA

 Eastern Coastline: It consists of 7 major ports namely V.O.C, Chennai, Kamarajar, Visakhapatnam,

Paradip, Haldia and Kolkata.

 Western Coastline: It consists of 6 major ports namely Cochin, New Mangalore, Mormugao, JNPT,

Mumbai and Kandla.

 These 13 major ports plus one non-major port Mundra together account for around 67% of total cargo

traffic handled at Indian ports.

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IMPORTANT FEATURES OF THE MAJOR PORTS IN INDIA

SN. Coast Ports Year of Est. Special Features
It is an artificial port. It mainly handles POL products, dry cargo, edible
1 V.O.C, Tamil Nadu 1979
oil salt and coal.
It is the oldest artificial harbour on the east coast of India. It mainly
Chennai, Tamil
2 1881 handles dry cargo, iron ore, fertilizers, crude oil and petroleum
Nadu
products.
Kamarajar, Tamil India’s first corporatized artificial port was established in 2001. It is a
3 2001
Nadu multifunctional energy port of the new millennium.
Coastline

Visakhapatnam, A natural harbour, it is India’s deepest landlocked port handling crude

4 1933
East

Andhra Pradesh oil and petroleum products.

It is an artificial lagoon port. It is responsible for handling iron ore and
5 Paradip, Orissa 1965
coal.
It is a site for the refinery. It is a newly developed port on the river
6 Haldia, West Bengal 1977 Hoogly to relieve the Kolkata port. It provides operational and
functional support to the main port.
It handles diversified commodities, coming from New Zealand,
Kolkata, West
7 1870 Australia and Asian Countries. It is a riverine port and impounded
Bengal
docks situated on the bank of the Hoogly river
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IMPORTANT FEATURES OF THE MAJOR PORTS IN INDIA

SN. Coast Ports Year of Est. Special Features

It is a natural harbour and handles the export of spices, coffee and tea
8 Cochin, Karela 1930
and imports fertilizers and POL
New Mangalore, Artificial lagoon port. It handles the import of fertilizers, edible oils
9 1975
Karnataka and POL products and handles the export of iron ore.
It is an open protected natural harbour at the mouth of river Zuari. It is
a premier iron ore exporting port of India. It is responsible for India’s
10 Mormugao, Goa 1963
Coastline

half of the iron ore export. It is one of the leading iron ore exporting
West

ports in the world.

All-weather tidal port. It is equipped with modern facilities having
11 JNPT, Maharashtra 1989
mechanized containers over 60% of cargo handling.
Mumbai, It is a leading cargo handling and POL handling port in India. It is a
12 1873
Maharashtra natural harbour with impounded wet docks.
It is situated in Kandla Creek and is 90km from the mouth of the Gulf
13 Kandla, Gujarat 1955
of Kutch. It handles crude oil and POL products.
NON-MAJOR
PORTS IN INDIA
East-Coast Ports West-Coast Ports
 India has around 200 non-
Andaman &
major ports. 23 Maharashtra 48
Nicobar
 Non-major also plays an
important role in developing Tamil Nadu 16 Gujarat 46
the economy. Orissa 13 Kerala 17
 It accounts for handling 43
Andhra Pradesh 12 Lakshadweep 10
percent of the total cargo traffic
in FY16. Pondicherry 3 Karnataka 9
 Data reveals that non-major
West Bengal 1 Goa 5
ports situated in Maharashtra,
Andhra Pradesh and Gujarat Daman & Diu 2
are responsible for handling
around 95 percent of total
traffic.

12
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MAJOR VS NON-MAJOR PORTS: TOTAL TRAFFIC (MILLION TONNES)

Period 2012-13 2013-14 2014-15 2015-16 CAGR%

Major Ports 545.8 555.5 581.3 606.4 1.2

Minor Ports 387.9 417 470.9 466.1 8.1
All Ports 933.8 972.5 1052.2 1072.5 3.9
COMPARISON OF INDIA, CHINA AND US

India China US
Port capacity stock (% of GDP) 1 3 10
Number of shipyards 7 70 45
Number of ports in global top 20 0 9 2
Container traffic (mn TEU) 11 185 44
Average annual growth in container 0.5 10 0.4
traffic (mn TEU)
Average turn-around time (Days) 4.5 1 1.2

14
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WHY PORTS ARE IMPORTANT FOR ECONOMIC DEVELOPMENT

 Seaports are a haven with facilities for berthing and anchoring ships and providing
equipment for the transfer of goods from ship to shore show to ship and ship to ship.
 Port functions as:
 Distribution centers
 Industrial zones
 Energy supply basis
 Trading centers with bank brokers and traders
 Urbanization and city redevelopment center
 Live activity basis in rural ports
 Money time leisure basis in cruise passenger ship terminals
 Private yacht marinas
 Dock ship recreation facilities
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WHY PORTS ARE IMPORTANT FOR ECONOMIC DEVELOPMENT

 Ports form a vital aspect of the national transport infrastructure.

 Ports from the main transport link with their international trade partners
and are a focal point for national and regional motorways and railways.
 Ports are a blessing for national prosperity- they provide a gateway for
trade and attract commercial infrastructure such as banks shipping
agencies freight forwarders etc.
 Port create a hassle and bustle of industrial activity.
 Ports are placed where foreign culture and ideas influence a nation.
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PORT & SHIPPING FOR ECONOMIC DEVELOPMENT

 Ports can be considered as “funnels” to economic development since they act as a catalyst
enabling three major types of effects:
 Direct benefits of ports
 Indirect benefits of ports
 Induced benefits of ports
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PORT & SHIPPING FOR ECONOMIC DEVELOPMENT

Direct Benefits of Port & Shipping

 They involve the revenues that accrue from the port activity and arise from the various
charges levied on ships and cargo for the use of the port.
 Throughput and traffic volumes are thus directly proportional to port revenue.
 They mainly include fees charged for pilotage, and berthing and towing, charges for cargo
handling and demurrage charges.
 Another category of direct benefits concerns the revenue generated by national transport
firms servicing the port, such as trucking companies and railways.
 The direct benefits to port users are generally referred to as economic benefits.
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PORT & SHIPPING FOR ECONOMIC DEVELOPMENT

Indirect Benefits of Port & Shipping Users

 They involve firms that import or export goods from the port.
 Indirect benefits to port users include cost savings that arise from reduced
operating costs, some of which may be realized outside the immediate port area.
 Enhanced port facilities and operations may also reduce inland transport costs
due to less congestion, increased productivity and better turnaround time.
 Other benefits to users may include savings in insurance costs due to port
improvements and savings in interest costs related to inventory, particularly
from lower inventory levels as more efficient port operations enable users to
adopt better supply chain management practices
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PORT & SHIPPING FOR ECONOMIC DEVELOPMENT

Induced Benefits of Port & Shipping Users

 They include the benefits that filter through to the suppliers of input factors,
such as income to labor directly employed in port-related activities, and
income to industries supplying the port with goods and services, creating
indirect employment.
 Port investment may also have the effect of stimulating economic activity in
industries that use the port.
 Induced benefits can also be assessed from an environmental perspective
where less pollution such as noise, particulates, and carbon accrues as a social
benefits in terms of quality of life and healthcare costs
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IN CASE YOU ARE INTERESTED IN FURTHER STUDY IN SCM

Journal(s)
• Supply Chain Management: An International Journal
• Supply Chain Management Review
• Purchasing World
• International Journal of Purchasing and Materials Management
• International Journal of Physical Distribution & Logistics Management
• Transportation Research: Part E
• European Journal of Operations Research
• Journal of Business Logistics

Conferences
• Production and Operations Management Society (POMS)
• Institute for Operations Research and the Management Sciences
Contact Details:
Email ID: bishaldeysarkar6891@gmail.com
bsarkar@gitam.edu
Mobile No.: 7982948964

THANK YOU !!