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EXECUTIVE SUMMARY
The aim of the project is to study the position of Visakhapatnam port and also the
measures to be considered for its improvement by comparing its performance with Chennai port
and the upcoming Krishnapatnam port.
As a part of my SIP, I have done a report, and the title of the project is PROSPECTS AND
CHALLENGES- A STUDY ON FEW EAST COAST PORTS OF INDIA is submitted by me
to GITAM School of International Business (GITAM University) is a genuine and bonafide
work done by me and is not submitted to any other University or published any time before. The
project work is in partial fulfillment of the requirement for award of Master of Business
Administration.
The main objective of the report is to study the operations held in both Import and Export
with respect to the port and also with respect to CFS (Container Freight Station) by
TRANSWORLD GLS (BLPL SINGAPORE) as an NVOCC. Comparing the performance of all
the three ports i.e., Visakhapatnam port, Chennai port and Krishnapatnam port by its salient
features like the number of TEUs handled by all the three ports for the past two years, the
cargoes handled by the ports, vessel schedules, turnaround times, terminal handling charges and
observing the position of the Visakhapatnam port by comparison. The measures to be taken by
the Visakhapatnam port in order to capture the opportunities in the market by competing with
other ports like Krishnapatnam port after the trade has been diverted from Chennai port for
various factors. By this report I want to mention the preventive measures to be taken by
Visakhapatnam port and its future in the coming years by competing with Krishnapatnam port
and Chennai port and diverting the trade from Krishnapatnam port to Visakhapatnam port.






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OBJECTIVE:
Operations management in ports (Chennai port, Krishnapatnam port and
Visakhapatnam port).
Comparison of the trading between these ports performance.
Comparing the difference in the terminal handling charges of the three ports.
Total TEUs traded by these ports in 2012-13 and 2013-14.
Factors effecting Visakhapatnam trade and how it is able to increase its
handling capacity of the terminal by overcoming the challenges.
INTRODUCTION:
Logistics is the management of the flow of goods between the point of origin and the
point of consumption in order to meet some requirements, for example, of customers or
corporations. The resources managed in logistics can include physical items, such as food,
materials, animals, equipment and liquids, as well as abstract items, such as time, information,
particles, and energy. The logistics of physical items usually involves the integration of
information flow, material handling, production, packaging, inventory, transportation,
warehousing, and often security. The complexity of logistics can be modeled, analyzed,
visualized, and optimized by dedicated simulation software. The minimization of the use of
resources is a common motivation in logistics for import and export.
Transworld GLS (India) Private Limited:
Transworld GLS (India) Private Limited is a unit under Transworld Group of Companies and
shares the same mission, vision and value statement of the Group. Incorporated in the year
2007 to represent BLPL Logistics Pte Ltd in India, with Head Office in Mumbai and having its
offices in Ahmadabad, Bangalore, Chennai, Kolkata, Ludhiana and New Delhi covering North
Central regions (NCR). The Transworld group has now diversified into a multi-faceted
Shipping and Logistics Company. The activities of the group include: Ship Owning (Container
& Bulk Carriers), Feedering, NVOCC, Logistics, Freight Forwarding and Supply Chain
Management, CFS's, Ship Management and Shipping Agencies.
Transworld GLS today represents BLPL Logistics and also acts as subagents for Orient
Overseas Container Line (OOCL) and subagents for United Arab Shipping Company (UASC)
in Chennai.
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Today, the Group is expanding its business through innovations stemming from a global
perspective. The Group's determination to have a global presence is supported by a
fundamental philosophy - to explore and discover new business horizons. Transworld Group's
scale of operations is expanding limitlessly on land and sea. Besides Ship Owning, Shipping
Agencies, Ship Management, Marine & Container Repairs, Container Storage, Inland
Transportation, the Group also has interests in Freight Forwarding and Logistics.
BLPL Logistics was established with the aim of combining the group strengths and years of
experience in the shipping field to provide a single platform to cater to all customers needs. It
initially started off in the year 2007 as a NVOCC operation between Singapore, Malaysia and
Bangladesh and now has grown steadily to encompass South East Asia and is expanding
further to the Far East and the entire Indian Sub Continent.
BLPL Logistics current inventory pool stands at around 2500 TEUs and their current scope
of operations extend to the countries of India, China, Vietnam, Thailand, Singapore,
Malaysia, Indonesia, Myanmar, Bangladesh, Sri Lanka, Pakistan, U.A.E., Oman, Bahrain,
Kuwait & Qatar.
INDIAN OPERATIONS OF BLPL SINGAPORE:
Ship Owning:
Shreyas Shipping & Logistics Ltd: Shreyas Shipping & Logistics is India's first and
only container feeder owning and operating company. Shreyas started its operations in
1993, and began primarily to fill the gap for feedering of containers between Indian
ports and internationally renowned transshipment ports such as Dubai, Khorfakkan,
Jebel Ali, Colombo and Singapore.
Transworld Bulk Carriers (India) Pvt Ltd: TBC's heritage has been successfully
built on the Values of Trust and Openness, Mutual Respect, Quality, Excellence and
Customer Orientation. TBC's activities include ship management, charters and
operations of ships that cater to transportation needs of customers worldwide.
Historically seen as the most versatile and flexible given their size, draft and cargo gear,
TBC operates ships in the handy-size to supra-max segment. TBC is keen to build
strategic and long-term rewarding relationships with customers desirous of availing dry
bulk shipping transportation solutions by providing first class quality and reliable
service. To this end, TBC seeks to build on existing long-term relationships with
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strategic partners and extensive presence in the Arabian Gulf, Indian Sub-Continent and
South East Asia region as also to attract new customers with growing requirements in
dry bulk shipping. TBC currently manages and operates modern and efficient Handy-
size dry bulk vessels that cater to the transportation needs of the customers across
the globe and is poised for further growth in the Handy-size to Supra-max ship
segments.
Feeder:
Shreyas Shipping & Logistics Ltd: Shreyas used its accumulated experience in
operating feeder services to pioneer coastal transshipment services within India thereby
connecting Indian ports to each other for the purposes of relaying containerized cargo.
This service provided crucial links between Indian ports and assisted transshipment of
cargo over Indian ports. Shreyas is always looking for new areas of business and is now
looking at Greenfield ventures in the areas of Mid-size parcel and domestic logistics.
Logistics:
Shreyas Relay Systems Ltd: Shreyas Relay Systems Ltd. Provides seamless, door-to-
door, multi-modal transportation solutions incorporating the Road-rail-sea-road route.
They operate scheduled services, with Indian flag ships, over 4000 varied types and
sizes of ISO containers and over 50 customised trailers to meet customers
requirement.
Albatross Shipping Ltd: Albatross Shipping is the Indian representative of Balaji
Shipping Lines FZCO on Liner Activity and Balaji Shipping (UK) Ltd & Transworld
FZE for the Forwarding activity, which is the part of the Transworld Group of
Companies. Balaji Shipping is a name to reckon with in the global maritime business
with an extensive service from the Indian Sub-continent to the Middle East, South
East Asia, Persian Gulf, CIS countries and South Africa. Balaji Shipping has the
flexibility of providing both Full Container Load (FCL) and Less than a Container Load
(LCL) services & Freight Forwarding activities. Other value added services such as
fully equipped warehouses in key ports make it a market leader and the customer's first
choice.
ADMEC Logistics Ltd: Admec Logistics Ltd. is engaged in the business of Container
Park Management, Transportation, Ship Repair and Ship Chandelling. Admec Logistics
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is ISO 9001:2000 certified company and undertakes import-export cycle business to
main sea ports and dry ports. Admec Logistics Ltd is the leading transporter in JNPT.
Admec Logistics Ltd also undertakes evacuation of empty containers of major lines.
SRS Freight Management Ltd: SRS Freight Management Ltd (Formerly known as
Haytrans) is a Transworld Group Company, an internationally recognized business
house of repute established in 1977, enjoying a thriving presence in each of the
following areas of business:
Ai r Cargo Movement
Ship Owners and Service Operators
Shipping agencies
Landside infrastructure
International Freight Forwarding
Logistics and Supply Chain Management
Road Transportation
other specialized business activities
Agency:
Albatross Shipping Ltd: Albatross Shipping is the Indian representative of
Balaji Shipping Lines FZCO on Liner Activity and Balaji Shipping (UK) Ltd &
Transworld FZE for the Forwarding activity, which is the part of the Transworld
Group of Companies. Balaji Shipping is a name to reckon with in the global
maritime business with an extensive service from the Indian Sub-continent to the
Middle East, South East Asia, Persian Gulf, CIS countries and South Africa. Balaji
Shipping has the flexibility of providing both Full Container Load (FCL) and Less
than a Container Load (LCL) services & Freight Forwarding activities. Other value
added services such as fully equipped warehouses in key ports make it a market leader
and the customer's first choice.
Crescent Shipping Agency (I) Pvt. Ltd: The search for an agent to handle tramp
vessels anywhere in India for any type of cargo ends here. It provides a dedicated
network of offices at all major and non-major ports in India as well as at all major ICDs.
With the experience of handling vessels for more than three decades and with a work
force of qualified professionals including master mariners they can able to meet
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customer requirements.
Transworld GLS (Singapore) Pte Ltd: Transworld Group Singapore is one of East
Asias fastest growing shipping companies. The Group operates five subsidiaries that
provide a comprehensive network of services including Ship owning, Feeder services,
Liner Shipping, Logistics and Agency Representation of major shipping lines. Key
business strength is the Groups ownership of its vessel fleet and cargo containers that
ensures stability of operations. Strategically headquartered in Singapore- the worlds
busiest port, Transworld Group Singapore has rapidly expanded its suite of solutions. It
now provides complete end-to-end shipping logistics expertise in this premier maritime
hub which is connected to more than 600 ports in 120 countries around the world. At the
heart of Transworld Group Singapore, is a dynamic team of committed and
experienced professionals that provide customized solutions for an industry that carries
over 90% of the worlds trade. The GROUPs high level of productivity is supported by
fast, efficient and responsive IT systems.
Transworld Shipping and Logistics Ltd: Transworld Shipping and Logistics
Limited is the General Agent in India of Ignazio Messina & C, a privately owned
Italian shipping company. It sources cargo to destinations served by the Messina Line.
Incorporated in the year 1977 to exclusively represent Ignazio Messina & C in India,
Transworld Shipping and Logistics Limited has its Head Office in Mumbai and offices
in Ahmadabad, Kandla, Ludhiana and New Delhi covering North Central Regions
(NCR). Messina offers regular container service from Mundra and Nhava Sheva on
weekly basis with remarkable transit to following direct ports of Djibouti (10 days),
Jeddah (15 days), Genoa (28 days) and Naples (30 days) by using weekly feeder
services from Mundra & Nhava Sheva and deploying 3 main line vessels from Abu
Dhabi/Jebel Ali, which are multipurpose vessels which can load both containers and
vehicles.
Relay Shipping Agency Pvt Ltd: Relay Shipping Agency is established in 1983,
which is the part of Transworld Group of Companies. To be a premier organization, this
offers total shipping solutions by providing high quality innovative services to its
customers. Relay Shipping is one of the leading agency for Orient Express Lines (OEL)
and Shreyas Shipping and Logistics Limited.
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One of the well established Agency House in India
Dedicated and Well Experienced Professionals
Excellent Relations with Port / Customs Authorities
CFS:
Albatross Inland Ports Pvt Ltd: Albatross Inland Ports Pvt Ltd defined new rules
of service orientation in the field of Container Freight Stations. Albatross CFS is new
face of a modern era CFS. Located in the hub of import and export cargo clearance i.e.
ICD Dadri. It is efficiently catering to the current needs of modern day logistics solution
through state of the art infrastructure with high end focus on service quality. Albatross
Inland Ports Pvt Ltd is a joint venture between Transworld Group of Companies and
Container Corporation of India (CONCOR). Albatross commenced operations on 24
April 2006 and has already touched new heights and handling highest number of
EXIM Cargo Ex. Dadri. It's CFS facility strategically located in ICD Dadri in an area
of 91000 sq. mt. It is equipped with all modern day amenities.
Transworld Terminals Private Limited: Transworld Terminals aims at defining
new rules of service orientation in the field of Container Freight Stations. Transworld
Terminals is new face of the modern era CFS. Located at Mundra and Tuticorin Port, the
gateway for import and export cargo from the vast hinterland of India. It is efficiently
catering to the current needs of modern day logistics solution through its state of the art
infrastructure w i t h h i g h e n d f o c u s o n service quality. It's Mundra CFS facility
established in September, 2007, around 7KMs away from the container terminals
(MICT/AMCT) and is easily accessible from Ahmadabad, Rajasthan and other North
Indian Locations through NH-8 and NH-8A. The Strategic Objective of Transworld
Terminals Private Limited, is to provide state-of-the-art facilities in the most cost
effective way by giving utmost priority to safety and security, in terms of container
handling, storage, customs bonding, warehousing and other value added services.
Ship Management:
Orient Express Ship Management Ltd: OESM, as a part of Transworld Group,
operates with total commitment to integrity while providing high quality innovative
services to its customers. Our team of dedicated, experienced and qualified
professionals is committed to provide a comprehensive range of services in ship
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management and is determined to exceed our client's expectations.
Management Consultancy:
Transworld Management Consultancy Pvt Ltd: Transworld Management
Consultancy (TMC) acts as an in-house consultancy firm offering professional services
to the various companies under the Transworld Group.
Service Tax issues and Assessments, Income Tax Assessments and Investments
Consolidation of the Management Information System (MIS) reports
Corporate level Human Resources team carrying out Manpower Management
Banking and Finance arrangements and facilities for the Transworld Group
coordinated by Group CFO
Secretarial cell handling Group legal requirements
Corporate level Payroll Management team
NVOCC:
NVOCC stands for Non Vessel Owning Common Carrier. NVOCC operation comprises
of sales, stuffing and transport of the containers to gateway ports. The bill of lading issue and
overseas distribution is taken care by the agents of NVOCC.
An NVOCC signs contracts with shipping lines to guarantee the shipment of certain
number of units each year. In return the shipping line offers favorable rates to the NVOCC.
Thus, NVOCC ends to be the largest trade maker for the container shipment.
Non-vessel operating common carriers (NVOCCs) are similar to traditional freight
forwarders, but with some important differences, mostly in terms of taking more
responsibility than a traditional freight forwarder can.
Often referred to as "shipless shipping lines", an NVOCC acts almost like a
common carrier, with the exception that an NVOCC does not actually operate the vessel it uses
to move the container.
Instead, the NVOCC brokers space on existing container ships and, using the
aggregate volume from all its clients, negotiates discount rates that in many cases will allow the
NVOCC to offer lower rates to shippers than those offered by the vessel operator themselves.
In addition, an NVOCC can and sometimes does own and operate its own or leased
containers (a pure forwarder usually does not), and in certain areas is accorded the status of a
"virtual carrier." In other cases, an NVOCC also accepts all liabilities of a carrier, depending on
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jurisdiction.
Shippers might use an NVOCC due to damage liability, for lower rates, ease of doing
business in some cases versus the ocean carriers, and more. The NVOCC will generally also
provide the functions of a freight forwarder as well in terms of managing end-to-end logistics
and customs clearance.
There are literally hundreds of NVOCCs, and recent analysis shows the market has a lot
of dynamics amongst the players. The world's 100 highest-volume NVOCCs has seen an
increase of 3.2% in their aggregate TEUs, closing out 2012 with about 4.8 million in TEU-
equivalent shipments, or about 151,000 more TEUs than in 2011.
TRADITIONAL LOGISTICS FUNCTIONS IN TRANSWORLD GLS:
1. Purchasing / Procurement
2. Inventory Control
3. Warehousing
4. Materials Handling
5. Order Processing
6. Transportation
7. Customer Service
8. Facility Location / Network Design
VARIOUS SERVICES OFFERED BY TRANSWORLD GLS:
BLPL offers a wide range of customizable end-to-end logistics solutions by carrying in-
gauge as well as out-of-gauge cargo and lay great emphasis on ensuring that services meet the
highest standards of quality, safety and reliability.
Custom Global Logistics Services:
BLPL has the infrastructure and the expertise to meet the varying logistical needs of
clients who are involved in the fields of technology, manufacturing, apparel, foods, retail etc.,
and has proved its capability in providing tailored global logistics solutions which are built on a
strong partner network of 3PL enablers, Forwards, Transport Enablers, Supply Chain
professionals and Logistics Experts.
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BLPL also have a large fleet of containers of assorted sizes and types to suit for all types
of transportation needs from normal dry cargo containers to specialized ones such as
sophisticated reefers and flat rack containers.
Multi-modal Transportation Solutions:
BLPL provides efficient, end-to-end solutions for shipments that require the utilization of
multiple modes of transport on a local as well as at global levels.
Extensive experience in handling the complex process of multi-modal transport makes
the company as an ideal logistics partner that can help keeping the business run smoothly in an
increasingly competitive environment.
Port Cargo Management (at port of origin and destination ports):
BLPLs Port Cargo Management services are the ideal way to manage shipments at the
ports of origin as well as destination ports across the globe. In addition to being fully
customizable to the customers distribution needs, Port Cargo Management solutions can help
reduce the costs associated with warehousing, systems and related equipment.
Reefer Carriage Solutions:
BLPL owns and operates a large fleet of reefers to handle cargo that requires refrigeration and also
ensure that the refrigerated cargo is monitored throughout the shipping process.
Each of the containers in reefer fleet is built to the highest technical specifications and undergoes
regular maintenance to ensure maximum operational efficiency.
Integral Reefers: Integral reefers have their own refrigeration units. Fleet of integral
reefers is powered by sophisticated electronic equipment from Carrier, a leading provider
of cooling solutions.
Special Projects and ODC (Over Dimension Cargo) Handling:
BLPL has organizational and technical expertise to handle special or oversized cargo in the
safest and best possible way. In addition, BLPL also own and operate a fleet of containers that
are designed specifically to handle special shipments and Over Dimensioned Cargo (ODC).
Open top containers: Open top containers are designed to allow loading through the
open top and the rear doors. A tarpaulin cover serves to protect the cargo from the
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elements. They are ideal for large and awkwardly-sized cargoes that can be handled only
with a crane or a rolling bridge.
Flat Rack/Flat Bed containers: This type is suitable for cargo that is classified as over
width, heavy weight or even both of these machinery, industrial boilers, tractors, steel
bars and more. The bottom of the flat rack containers is specially reinforced to handle the
high pressure of particularly heavy cargo. High load lashing rings are installed on the
corner posts, top-side rails and bottom side rails to ensure that the cargo can be
adequately secured in place.
Logistics Support - Documentation and Tracking:
Documentation and Customs Clearance: Knowledge of the customs regulations of
both importing and exporting countries is critical for smooth door to door global
transportation. Employees at Transworld GLS, who are well versed in the customs laws
of each country, confirm the required procedures for imports and exports by providing
total support for related tasks and coordinate quick and accurate customers clearance.
Container Tracking: BLPL's online container tracking software enables customers to
track their cargo shipments in real time. Customers can also opt to receive consignment
tracking alerts via email.
NVOCC (Non-Vessel Operating Common Carrier):
The definition and act of a freight forwarder and NVOCC is described by government of
various countries differently. The legal obligations to government, clients and public vary from
country to country for an NVOCC and a Freight forwarder. The NVOCC means Non-Vessel
Operating Common Carrier. A Non vessel operating common carrier is a cargo consolidator who
does not own any vessel, but acts as a carrier legally by accepting required responsibilities of a
carrier who issues his own bill of lading (or airway bill), which is called House bill of lading
under sea shipment and House airway bill under air shipment. An NVOCC need not be an agent
or partner of a freight forwarding company, where as freight forwarding company can act as a
partner or agent for an NVOCC.
Globalization has lead to an increase in the integration of national markets and the
interdependence. Countries worldwide have opened their boundaries for wide range of goods,
services and commodities. Today, in a globalised economy, no nation is self sufficient. Every
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nation is involved at different levels in trade to sell what it produces, in order to gain what it
lacks and also to produce more effectively than their partners.
A freight forwarders who does not own vessel, but functions as a carrier by issuing its
own bill of lading and assuming responsibility for the shipments is called an NVOCC Non vessel
operating common carrier. Firm that ship cargo on behalf of its clients. NVOCC functions like
any other carrier, issuing its own bills of lading or air way bills.
There are numerous benefits of using a Non Vessel Operating Common Carrier. They can
also help a company save time and resources because of their understanding and immense
knowledge of the cargo shipping industry. This knowledge includes information on what the
most effective and efficient routes of delivery are, based on specific destinations. They have
expertise in most of the constituents of cargo shipping, packaging, pickup and delivery. This
knowledge is institutional in providing a cargo with the best possible standards in accordance
with international standards of delivery. Non Vessel Operating Comon Carriers are considered to
be one of the intermediaries in the shipping industry.
The latest law in this area has defined the NVOCC as a common carrier which deos not
own or operate the vessels by which the ocean transportation is provided, and is a shipper in its
relationship with the ocean carrier.
NVOCC operators buy space from ocean carriers for consolidated shipments from a
variety of clients. Documentation, logistical planning and warehousing of cargo from the port to
final destination also are taken care of as part of the services provided.
It was in 1951, when first intermodal modern day container was built and in 1955 first
intermodal transport was operated. For the purpose to stream line the movement of container
from origin to destination, there were intermediaries at each stage in the system. Ocean Freight
Forwarder, Customs Clearance Agents, Trucking Agency, Railway Booking and Wagon Lease
Agency, Container Freight Station, Port Clearance Agents, etc.
Components:
Each time of the following three stages, i.e. Inland Transportation at origin; Seaway and
finally Inland Transportation at destination, a new Bill of lading was issued and cargo was
insured. With International Trade increasing in 1970s, efficiencies from containerisation led to
trade of large volume and increased ocean carriers attention to ship with full container load
(FCL). That was the time when NVOCC emerged into the business. NVOCCs are considered as
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one of the intermediaries in maritime industry. NVOCCs went a way ahead in the business
and provided end to end logistic solution even to small shippers.
At origin, a NVOCC plays a role of consolidator as well as packaging agency, whereby
they take part parcels from various shippers and consolidate in one full load container. Increase
in efficiency and low time turn out time in transportation from inland depots to gateways of port.
Another concept of Multicity Consolidation (MCC) is also leveraged by NVOCCs. Once the
cargo is placed in Container Freight Station (CFS) or warehouse at ICDs, cargo to a same
destination is consolidated in one FCL. In this way NVOCCs filed a transportation niche,
particularly for Inland ports, as consolidator for smaller shippers ignored or abandoned by the
ocean carrier.
NVOCC Bill of Lading:
NVOCCs releases Multimodal House Bill of Ladings (HBL) once they run a door-to-
door service. They issue this HBL against shipper/final consignee whilst the Steam Ship Line
issues a Master B/L (MBL) against the forwarder at origin and the forwarder at destination.
NVOCCs play an important part in international trade. It is important that safe guards are in
place to ensure the security of blank Bills of Lading, and there are systems in place to track them
if they are misused.
A NVOCC, who does not charter an entire ship, condudes contracts of carriage with
several shippers/freight forwarders concerning individual packages or containers. When the
NVOCC has accumulated an appropriate number of orders, he condudes a contract of carriage
with a carrier who actually will perform the transportation. The NVOCC makes money by
obtaining a better price from the carrier then he (the NVOCC) charges his shippers. The main
duty of a carrier consists of the unconditional and unlimited obligation to transport the goods
from the port of lading to the port of destination. The commitment to fulfill the transport
obligation is the only and decisive criterion for a carrier.
The salient features of NVOCC (Export Sea) are as below:
Register individual shipment, shipping Bill wise.
Club multiple shipping bills under one HBL.
Club multiple HBLs under one Master B/L.
Prepare and print Master and House Bill of Lading.
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Specify B/L charges for various charge heads for both payment and receipts and in any
currency.
Prepare Challan report for HBL.
Prepare and send Consol Manifest.
A unique alert system which updates the user on current status of shipments based on
shipment life cycle defined. These alerts can be mailed directly to the customer.
Prepare and send shipping advice to customer.
Prepare and print Container Load Plan (CLP).
Shipped on board (SOB) or shut out report preparation.
Track transshipment details of containers at various cargo hubs.
Various Customer Service reports. Can be sent directly through email from system.
Prepare and print various types of Invoices e.g. Services and Freight, Brokerage, Lifting
Shifting etc. including to Overseas Agent.
The salient features of NVOCC (Import Sea) are as below:
Record various details for Import Shipment.
Maintain various stages of shipment in its life cycle.
A unique alert system which updates the user on current status of shipments based on
shipment life cycle defined. These alerts can be mailed directly to the customer.
Keep track of various charges related to a shipment e.g. Freight, Fuel Surcharge, Ex-
works etc.
Prepare, print and send Cargo Arrival Notice (CAN) to importer for collection of charges
which are linked to accounts.
Receive or send Delivery Order (DO) as the case may be.
Checks for shipment under Bank Release Order (BRO) and controls issue of DO.
Overseas Agents inward invoice/Credit/ Debit Note can be booked into system for each
shipment with profit sharing.
A complete Foreign Remittances module for payment and receipts with RBI and bank
covering letters/forms.
The salient features of NVOCC (Accounts) are as below:
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Complete accounting package to suit specifically the needs of freight forwarding
/NVOCC business with multi location and multi division activity.
Managing the accounts of individual profit centres combined with common accounting
books.
Prepare/view trial balance/ profit and loss/balance sheet for individual profit centres as
well as entire company.
Prepare and print all types of vouchers e.g. Cash/Bank payment and receipts and journal
vouchers.
Receipts and payments can be booked against particular invoices with TDS deducted
details.
Book Trade Bills i.e. related to a particular shipment e.g. Transport or Freight Debit
notes.
Facility for Non Trade bills where tracking can be held for each item in a bill e.g.
stationery items, Telephones etc. with separate recording of Service Tax Charged.
Complete Cheque book management module for tracking of checks bank wise and also
cancelled and post dated cheques.
Merge Data of different Branches in Head Office.
Complete security module for rights of each user to operate a certain part of software.
Data can be exported to TALLY accounting package.
WORKING OF NVOCCS AT VARIOUS STAGES:
Warehousing & In plant Logistics:
Receipt
Unloading into warehousing
Inspection
Storage including stacking
Preservation
Order execution
Dispatch and loading into own/customers vehicle
Yard management:
Receipt of cargo
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Inspection
Storage
Inventory management
Order execution
Billing
Dispatch to customers
Value Added Service:
Unpacking/Repacking
Grading/Sorting
Break-bulk
Labeling/Bar Coding
Heat Sealing/Shrink Wrapping
Assembly related services
Quality Check
Information Related Services:
MIS on stock, dispatch
KPI related MIS
Invoicing related MIS
Preparation/submission of Excise returns
Invoicing:
Order processing
Invoice printing
Related statutory Documentation
Inventory Management:
Re-order level assessment & finalization
Stock-aging & FSN analysis
Distribution (Secondary Transportation):
Transportation to customers premises
Unloading at customers premises
Transit insurance
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Reverse Logistics
Transport load optimisation
CONTAINER FREIGHT STATION (CFS):
CFS is a place where containers are stuffed, de-stuffed and aggregation/ segregation of
export/import cargo take place. With the growing volume of international trade, the need for
expeditious clearance of goods at the port within the minimum possible time has been gaining
importance. This is more so when the ports are facing congestion at their premises. Further, for
optimal utilization of existing infrastructure, space, equipment, goods that are landed at ports
need to be evacuated straight away without any loss of time. Accordingly the concept of
Container Freight Stations (CFS) has grown in importance along with the development and
growth of ports.
A CFS is an extended arm of Port/ ICD/Air cargo Complex, where import/ export goods
are kept till completion of their examination and clearance. The imported goods can be
immediately shifted from the port to CFS which also helps in the reduction of port congestion.
All the activities related to clearance of goods for home consumption, warehousing, temporary
admissions, re-export, temporary storage for onward transit and outright export and
transshipments take place from such stations. Therefore, clearance of goods from CFS is an
important point of consideration for trade in respect of export/ import Cargo as it is the final
Customs contact point.
TYPES OF CONTAINERS:
There are many shipping containers that serve different purposes. We have created a list of the
top 7 most commonly used shipping containers to help you find the most suitable container for
your shipping needs.
1. 20, 40 and 40 HQ dry storage container
2. Flat rack container
3. Open top container
4. Insulated and thermal container
5. Tank container
6. Refrigerated ISO container
7. Special purpose container

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TYPES OF CONTAINERS HANDLING BY TRANSWORLD GLS:


























Start
Liquid Cargo?
Over-width Cargo?
>2.35m (78)
Over-height Cargo?
>2.54m (85)
Temperature Cargo
Required?
Tank
Container
Flat-Rack
Container
Open-Top
Container
Refrigerated
Container
20 Standard
Container
Standard
Container
40 Standard (or)
40 High-Cube
Container
40 High-Cube
(or) 45 High-
Cube Container
Food-Grade
Tank
Container
Chemical
grade Tank-
Container
20 Reefer -
Container
40 High-
Cube Reefer
Container
NO
NO
NO
NO
YES
S
YES
YES
S
YES
Liquid
Chemical
Liquid
food stuff
Heavy
weight
cargo
Light
weight
cargo
Heavy
weight
cargo
General
cargo
Light weight &
voluminous cargo
19

1. 20, 40 and 40 HQ dry storage container:
These are some of the most common shipping containers. They are used for shipping dry
goods that do not require temperature control.


2. Flat rack container:
Flat rack containers are especially suitable for heavy loads and cargo that needs loading
from the top or sides. There are collapsible containers and non-collapsible containers
with or without walls. Flat rack containers are manufactured from steel and come in 20
and 40 sizes.

3. Open top container:
Open top containers do not have solid roofs instead they have removable bows and a
weatherproof tarpaulin roof which can be secured with ropes and allows for a
significantly simplified loading and unloading process.
20

The door header may also be swung out allowing for easier access to the cargo.
Open top containers are ideal for bulky cargo such as machinery.



4. Insulated and thermal container:
These storage containers have a regulated temperature control allowing them to maintain
a higher temperature to keep goods warmer.


5. Tank container:
These are liquid storage containers. They are typically constructed of strong steel and
other anti-corrosive materials to protect the liquid freight inside it.
21



6. Refrigerated ISO container:
Refrigerated ISO freight container is one that is temperature regulated and always has a
carefully controlled low temperature. These types of units are used for the shipment of
perishable substances like vegetables and fruits over vast distances.


7. Special purpose container:
These containers can be different shapes and sizes and are often custom made for specific
cargo.
22



OPERATIONS IN IMPORT & EXPORT:
The imported goods before clearance for home consumption or for warehousing are required to
comply with prescribed Customs clearance formalities. This includes presentation of a Bill of
Entry containing details such as description of goods, value, quantity, and exemption notification
etc., Customs Tariff Heading. This Bill of Entry is subject to verification by the proper officer of
Customs (under self assessment scheme) and may be reassessed if declarations are found to be
incorrect. . Similarly Customs clearance formalities for goods meant for export have to be
fulfilled by presenting a Shipping Bill and other related documents. These documents are
verified for correctness of assessment and after examination of the goods, if warranted, Let
Export Order is given on the Shipping Bill.
Import procedure:
Goods imported into the country attract Customs duty and are also required to confirm to
relevant legal requirements. The goods mentioned in the IGM for transit to any place outside
India or meant for transhipment to another Customs station in India are allowed transit without
payment of duty. In case of goods meant for transhipment to another Customs station, simple
transshipment procedure has to be followed by the carrier and the concerned agencies at the first
port of landing and the Customs clearance formalities have to be complied with by the importer
after arrival of the goods at the other Customs station. There could also be cases of transshipment
of the goods after unloading to a port outside India. Here also simple procedure for
transshipment is prescribed, and no duty is required to be paid.
The goods which are offloaded at a port for clearance the importers have the option to clear the
goods for home consumption after payment of duties leviable. For this purpose every importer is
required to file a Bill of Entry for home consumption or warehousing.
23

The importers have to obtain an Importer-Export Code (IEC) number from the Directorate
General of Foreign Trade prior to filing of Bill of Entry for clearance of imported goods. The
Customs EDI System receives the IEC number online from the DGFT.
If the goods are cleared through the EDI system, no formal Bill of Entry is filed as it is generated
in the computer system, but the importer is required to file a cargo declaration having prescribed
particulars required for processing of the Bill of Entry for Customs clearance.
The importer clearing the goods for domestic consumption through non-EDI ports has to file Bill
of Entry in four copies; original and duplicate are meant for Customs, third copy for the importer
and the fourth copy is meant for the bank for making remittances. Along with the Bill of Entry
the following documents are also generally required:
(a) Signed invoice
(b) Packing list
(c) Bill of Lading or Delivery Order/Airway Bill
(d) GATT valuation declaration form duly filled in
(e) Importers/CHAs declaration
(f) Import license, wherever necessary
(g) Letter of Credit, wherever necessary
(h) Insurance document
(i) Import license, where necessary
(j) Industrial License, if required
(k) Test report in case of items like chemicals
(l) DEEC Book/DEPB in original, where relevant
(m) Catalogue, technical write up, literature in case of machineries, spares or chemicals, as
applicable
(n) Separately split up value of spares, components, machineries
(o) Certificate of Origin, if preferential rate of duty is claimed
Under the EDI system, the importer does not submit documents as such but submits declarations
in electronic format containing all the relevant information to the Service Centre. A signed paper
copy of the declaration is taken by the service centre operator for non-reputability of the
declaration. A checklist is generated for verification of data by the importer/CHA. After
verification, the data is filed by the Service Centre Operator and EDI system generates a Bill of
24

Entry Number, which is endorsed on the printed checklist and returned to the importer/CHA. No
original documents are taken at this stage. Original documents are taken at the time of
examination. The importer/CHA also needs to sign on the final document before Customs
clearance.
After noting, the Bill of Entry gets sent to the appraising section of the Custom House for
assessment functions, payment of duty etc. In the EDI system, the noting aspect is checked by
the system itself, which also generates Bill of Entry number.
After noting/registration the Bill of Entry is forwarded manually or electronically to the
concerned Appraising Group in the Custom House dealing with the commodity sought to be
cleared. Appraising Wing of the Custom House has a number of Groups dealing with
commodities falling under different Chapter Headings of the Customs Tariff and they take up
further scrutiny for assessment, import permissibility angle etc.
Amendment of Bill of Entry:
Whenever mistakes are noticed after submission of documents, amendments to the Bill of Entry
is carried out with the approval of Deputy/Assistant Commissioner. The request for amendment
may be submitted with the supporting documents. For example, if the amendment of container
number is required, a letter from shipping agent is required. On sufficient proof being shown to
the Deputy/Assistant Commissioner amendment in Bill of Entry may be permitted after the
goods have been given out of charge i.e. goods have been cleared.
Prior Entry for Bill of Entry:
For faster clearance of the goods, Section 46 of the Customs Act, 1962 allows filing of Bill of
Entry prior to arrival of goods. This Bill of Entry is valid if vessel carrying the goods arrives
within 30 days from the date of presentation of Bill of Entry. This Bill of Entry has 5 copies, the
fifth copy being called Advance Noting copy. The importer must declare that the vessel is due
within 30 days and present the Bill of Entry for final noting as soon as the IGM is filed.
Often goods coming by container ships are transferred at intermediate ports (like Colombo) from
mother vessel to smaller vessels called feeder vessels. At the time of filing of advance Bill of
Entry, the importer does not know which vessel will finally bring the goods to Indian port. In
such cases, the name of mother vessel may be filled in on the basis of the Bill of Lading. On
arrival of the feeder vessel, the Bill of Entry may be amended to mention names of both mother
vessel and feeder vessel.
25

Accredited Clients Programme:
The Accredited Clients Programme (ACP) has been introduced with the objective of granting
assured facilitation to importers who have demonstrated capacity and willingness to comply with
the laws administered by the Customs. This programme replaces all existing schemes for
facilitation in the Customs stations where EDI and RMS is implemented. Importers registered as
Accredited Clients form a separate category to which assured facilitation is provided.
Considering the likely volume of cargo imported by the Accredited Clients, Custom Houses may
create separately earmarked facility/counters for providing Customs clearance service to them.
Commissioners of Customs are also required to work with the Custodians for earmarking
separate storage space, handling facility and expeditious clearance procedures for these clients.
The RMD administers the ACP and maintains the list of Accredited Clients centrally in the
RMS. The importers who have been granted the status of Accredited Clients are required to
maintain high levels of compliance, which is closely monitored by the RMD in co-ordination
with the Commissioners of Customs. Where compliance levels fall, the importer is at first
informed for improvement and in case of persistent noncompliance, the importer may be
deregistered under the ACP.
In order to ensure that there is no misuse of the program by imposters (persons who assume the
Accredited Clients name and identity), the Accredited Clients should file Bills of Entry using
digital signatures. Additionally, all Bills of Entry must be filed through the ICEGATE and duty
in respect of these consignments paid though such the Accredited Clients bank account at the
designated bank.
The eligibility criteria for importers to get ACP status are as follows:
(i) They should have imported goods valued at Rs. Ten Crores [assessable value] in the previous
financial year; or paid more than Rs. One Crore Customs duty in the previous financial year; or,
in the case of importers who are also Central Excise assesses, paid Central Excise duties over Rs.
One Crore from the Personal Ledger Account in the previous financial year, or they should be
recognized as status holders under the Foreign Trade Policy.
(ii) They should have filed at least 25 Bills of Entry in the previous financial year in one or more
Indian Customs stations.
(iii) They should have no cases of Customs, Central Excise or Service Tax, as detailed below,
booked against them in the previous three financial years:
26

(a) Cases of duty evasion involving mis-declaration/ mis-statement/collusion /willful suppression
/ fraudulent intent whether or not extended period for issue of SCN has been invoked.
(b) Cases of mis-declaration and/or clandestine/unauthorized removal of excisable / import /
export goods warranting confiscation of said goods.
(c) Cases of mis-declaration/mis-statement/collusion/willful suppression/ fraudulent intent aimed
at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward
schemes.
(d) Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited
with the exchequer.
(e) Cases of non-registration with the Department with intent to evade payment of duty/tax.
(iv) They should not have any cases booked under any of the Allied Acts being implemented by
Customs.
(v) The quality of the submissions made by the applicants to Customs should be good as
measured by the number of amendments made in the Bills of Entry in relation to classification of
goods, valuation and claim for exemption benefits. The number of such amendments should not
have exceeded 20% of the Bills of Entry during the previous financial year.
(vi) They should have no duty demands pending on account of non-fulfillment of export
obligation.
(vii) They should have reliable systems of record keeping and internal controls and their
accounting systems should conform to recognized standards of accounting. They are required to
provide the necessary certificate from their Chartered Accountants in this regard.The ACP
accreditation is initially valid for a period of one year and would be renewable thereafter upon a
review of the compliance record of the Accredited Client.
Export procedure:
For clearance of export goods, the exporter or his agent has to obtain an Importer- Export Code
(IEC) number from the Directorate General of Foreign Trade prior to filing of Shipping Bill.
Under the EDI System, IEC number is received by the Customs System from the DGFT online.
The exporter is also required to register authorized foreign exchange dealer code (through which
export proceeds are expected to be realized) and open a current account in the designated bank
for credit of any Drawback incentive.
27

All the exporters intending to export under the export promotion scheme need to get their
licences/DEEC book etc. registered at the Customs Station. For such registration, original
documents are required.
Waiver of GR form:
Generally the processing of Shipping Bills requires the production of a GR form that is used to
monitor the foreign exchange remittance in respect of the export goods. However, there are few
exceptions when the GR form is not required. An example is export of goods valued not more
than US $25,000/- and another is export of gifts valued upto Rs.5,00,000/-
Arrival of export goods at docks:
The goods brought for the purpose of export are allowed entry to the Dock on the strength of the
check list and other declarations filed by the exporter in the Service Center. The custodian has to
endorse the quantity of goods actually received on the reverse of the check list.
Customs examination of export goods:
After the receipt of the goods in the Docks, the exporter/CHA may contact the Customs Officer
designated for the purpose, and present the check list with the endorsement of custodian and
other declarations along with all original documents such as, Invoice and Packing list, AR-4, etc.
The Customs Officer may verify the quantity of the goods actually received and enter into the
system and thereafter mark the Electronic Shipping Bill and also hand over all original
documents to the Dock Appraiser who assigns a Customs Officer for examination and indicate
the officers name and the packages to be examined, if any, on the check list and return it to the
exporter/CHA.
Stuffing / loading of goods in containers:
The exporter or his agent should hand over the Exporters copy of the Shipping Bill duly signed
by the Appraiser permitting Let Export to the steamer agent who would then approach the
proper officer (Preventive Officer) for allowing the shipment. In case of container cargo the
stuffing of container at Dock is done under Preventive Supervision. Further, loading of both
containerized and bulk cargo is to be done under Preventive Supervision. The Customs
Preventive Superintendent (Docks) may enter the particulars of packages actually stuffed into the
container, the bottle seal number, details of loading of cargo container on board into the EDI
system and endorse these details on the Exporters copy of the Shipping Bill. If there is a
difference in the quantity/ number of packages stuffed in the containers/goods loaded on vessel
28

the Superintendent (Docks) may put a remark on the Shipping Bill in the EDI system and that it
requires amendment or change in quantity. Such Shipping Bill may not be taken up for the
purpose of sanction of Drawback/DEEC logging, till it is suitably amended.
The Customs Preventive Officer supervising the loading of container and general cargo into the
vessel may give Shipped on Board endorsement on the Exporters copy of the Shipping Bill.
Palletisation of cargo is done after grant of Let Export Order (LEO). Thus, there is no need for a
separate permission for palletisation from Customs. However, the permission for loading in the
aircraft/vessel would continue to be obtained.
Amendments:
Any correction/amendments in the check list generated after filing of declaration can be made at
the Service Center provided the documents have not yet been submitted in the EDI system and
the Shipping Bill number has not been generated. Where corrections are required to be made
after the generation of the Shipping Bill number or after the goods have been brought into the
Export Dock.
Drawback claim:
After actual export of the goods, the Drawback claim is automatically processed through EDI
system by the officers of Drawback Branch on first-come-first-served basis. The status of the
Shipping Bills and sanction of Drawback claim can be ascertained from the query counter set up
at the Service Center. If any query is raised or deficiency noticed, the same is also shown on the
terminal and a print out thereof may be obtained by the authorized person of the exporter from
the Service Center. The exporters are required to reply to such queries through the Service
Center. The claim will come in queue of the EDI system only after reply to queries/deficiencies
is entered in the Service Center.
The Steamer Agent/Shipping Line may transfer electronically the EGM to the Customs EDI
system so that the physical export of the goods is confirmed, to enable the Customs to sanction
the Drawback claims.
Generation of Shipping Bills:
After the Let Export order is given on the EDI system by the Appraiser, the Shipping Bill is
generated in two copies i.e., one Customs copy, one exporters copy (EP copy is generated after
submission of EGM). After obtaining the print out the Appraiser obtains the signatures of the
Customs Officer and the representative of the CHA on both copies of the Shipping Bill and
29

examination report. The Appraiser thereafter signs and stamps both the copies of the Shipping
Bill.
Export General Manifest:
All the shipping lines/agents need to furnish the Export General Manifests, Shipping Bill-wise,
to the Customs electronically before departure of the conveyance.
Apart from lodging the EGM electronically the shipping lines need to continue to file manual
EGMs along with the exporter copy of the Shipping Bills in the Export Department where they
would be entered in a register. The shipping lines may obtain acknowledgement indicating the
date and time at which the EGMs were received by the Export Department.
OPERATIONS INCLUDING IN CFS:
In import as the vessel arrives the discharge of container takes place at the port. From the port
the container is moved either to the CFS if its a local container or to an ICD if its an ICD
container.
At CFS destuffing of cargo from container takes place and the empty container is moved to the
empty yard. At the empty yard the container is repaired with in estimated record of 48hrs. If the
container doesnt have any repairs then the container is reused for export order. If the container
has to be repaired then approval from the principals for container is expected and the final bill
after repair is forwarded to the consignee.
At the export cycle the container booking by the exporter is received and the container release
order (CRO) is issued by the officer.
Upon receiving the CRO the shipper picks up the container from the empty yard and stuffing of
cargo into the container takes place either at the CFS or at the factory. Form-13 is issued for the
container once it is stuffed to enter into the port by the concerned officer.
Shipping bill is received from the port for the containers loaded in the yard. After the shipping
bill received the containers are loaded onto the vessel. The load list is sent to POD within 24hrs
from vessel sailed and the documents like B/L is sent to POD.
If the bill of lading is not surrendered then POD is advised to release the cargo based on the
original B/L.
If the B/L is surrendered then the freight certificate is issued to the consignee and the Telex
release is sent to POD for releasing the cargo.

30

IMPORT EXPORT

























KRISHNAPATNAM PORT:
Krishnapatnam is a minor port in the state of Andhra Pradesh on the eastern coast of
India at Latitude 14o15N and Longitude 80o18E. The port is approximately 170 km north of
Chennai. Nellore is the nearest major town to the port, located at a distance of 25km. The port is
LOADING
OFFLOADING IN PORT
REPAIRING
VESSEL - SHIP
APPROACHING PORT
POSTING FORM -13 -EIR
FORM-13 OR EIR REQUEST
STUFFING
CONTAINER PICK UP
CRO - RELEASE
BOOKING REQUEST
RETURN TO YARD
DELIVERY FROM CFS
DO ISSUE
IN TO CFS
OUT TO CFS
VEESEL - SHIP
DISCHARGE
31

located at the distance of about 1km from the confluence of Khandaleru River with the Bay of
Bengal, and has an estuarine basis 1.5km long and 1km wide. The interstate navigation canal
called Buckingham Canal flanks the port area on its western side. A lighterage port at
Krishnapatnam has been in operation since 1956. Ships were anchored off the port at a distance
of about 5km, where the water depth is around 10 m, and the cargo is transferred from ships to
the port jetties by lighters during fair weather periods.
Krishnapatnam port is being developed by a NAVAYUGA Group as a deep-water all
weather port, which in Phase I will have the capacity to handle 13.5 million tones per annum
(MTPA) traffic comprising mainly of iron ore, thermal and coking coal. The Financial Closure
for the PhaseI was achieved on 16th October 2006. PhaseI of the development has been
designed to achieve a throughput of 14.5 MTPA by the 6th year of operation comprising 9
MTPA of iron ore exports, up to 4 MTPA of thermal & coking coal imports and general cargo
traffic of up to 1.5 MTPA. It is planned to construct three berths one each for iron ore, coal and
general cargo with a draft of 12 m.
PhaseI for development of the Krishnapatnam port comprises the development of following
facilities:
Breakwaters (North breakwater 609 m long; South breakwater 1,574 m long);
Approach channel & maneuvering areas;
Navigational aids;
Berthing jetties one coal berth, one iron ore berth and one multi-purpose berth;
Stackyard for iron ore & coal;
Utility buildings;
Services such as water, power, control systems and security.
The Phase I was initially be designed to initially cater to vessels of up to 60,000 DWT,
which will be upgraded in later stages to handle capacities of 200,000 DWT. Dredged level at
berths during PhaseI will be 13.2 m Chart Datum (CD). Total berth length will be 850m.
Subsequently, there was an addition of one berth in Phase I for handling Coal imports upto 7
MTPA. This berth will mainly cater to the coal requirement for JSW Steel for their proposed
expansion in steel plant and its proposed 650 MW power plant in Vijayanagar in Karnataka. This
additional berth will also be commissioned along with the earlier 3 berths in Phase I.
32

The following facilities are planned for the phase II operation:
4 Coal berths with cargo handling equipments and facilities.
1 start-up Container Terminal using one berth with equipments.
2 General Cargo berths with equipments so as to handle multi commodity like cement &
clinker, steel, granite, bayrites and other break bulk cargo.
Dredging to the extent of about 20 million cu.m. at the berths, inner & outer channels and
turning circle to facilitate navigation of large vessels.
4 additional market buoys to serve as navigational aids at the breakwaters and berths.
North breakwater to be extended upto -5.5m contour.
Other necessary civil infrastructure like buildings, internal roads & drainage and electrical
works.
KPCLs business plan for Phase-II envisages handling of non containerized dry cargo arising out
of Captive / Non captive and Hinterland based industry requirements. The General Cargo profile
comprises mainly of
Coal
Iron & Steel
Cement & Clinker
Fertilizer
Agri commodities like Wheat, Rice and Pulses
Granite & Minerals
Project Cargo mainly ODC
Others like Scrap, Forest Product etc
The cargo profile of Krishnapatnam Port broadly falls in three major categories, namely:
- Captive Cargo i.e. Cargo which is assured because of either locational advantages and / or
the facilities created at the port to cater the particular cargo requirements.

- Hinterland Cargo i.e. existing / potential cargo of the hinterland situated in close vicinity
of the port that Krishnapatnam will serve. It is logical for this cargo to get attracted to
Krishnapatnam due to its location and its associated distinct logistical advantages.
- Non Captive Cargo i.e. existing / potential cargo of areas situated in close vicinity or far
off from the main hinterland. The said cargo will be attracted to Krishnapatnam due to
33

overall facilities / infrastructure; cost effectiveness and enhanced service levels to the end
users compared to competition.
For the purpose of financial projections only captive and hinterland cargo is being considered. A
brief analysis of the Captive and Hinterland cargo is discussed below:
Captive Cargo
-Thermal & Coking Coal Imports
The vicinity of Krishnapatnam has existing thermal power plants of over 4,000 MW. The
existing power plants consume domestic coal procured from Mahanadi Coalfields Limited
(MCL) or Singareni Collieries Company Ltd. (SCCL). Any coal coming from MCL, is currently
transported by rail-sea-rail route i.e. from Talcher to Paradip port by rail, then by sea from
Paradip to Chennai port. Finally, coal is transported by rail from Chennai port to the respective
power plants of Raichur and Rayalseema. Krishnapatnam will become a natural choice for
Raichur Thermal Power Station, Rayalseema Thermal Power Plant, JSW Power Plant and
Bellary Thermal Power Plant, as it will save them considerable amount of freight costs if they
use Krishnapatnam over Chennai port. Following the same rationale all the power plants in the
hinterland having coal linkage with MCL will stand to gain by using Krishnapatnam port rather
than currently used Chennai port. Also in case there is any delay in procuring coal from these
mines these power plants may also go for imported/blended coal using Krishnapatnam port.
Total coal forecasts to be handled by Krishnapatnam port for these plants from the year 2012-13
is estimated at 12 million tonnes.
Also by 2015, over 9,000 MW of additional capacity is proposed to be constructed in the vicinity
of Krishnapatnam port. Reliance power is constructing 4000 MW UMPP based on imported coal
at Krishnapatnam port. KPCL has entered into a agreement with Reliance Power for handling 14
million tonnes of coal for their upcoming 4000 MW UMPP. UMPP shall start commissioning its
units from 2012-13 and will go full stream from 2015-16.
APGENCO is setting up a 1,600 MW thermal power plants at Krishnapatnam port. The power
project is proposed to be implemented in two phases, with the first phase having a capacity of
800 MW expected to be commissioned in 2009-10 and second with the same capacity in 2012-
13. Annual coal requirement for the said plant would be about 5 million tones. APGENCO is
34

proposing to use blended coal for the same with 30% of the requirement to be imported via
Krishnapatnam port. For the rest 70% company has received LOA from MCL and it plans to
transport the coal via sea route using Krishnapatnam port. KPCL shall install a conveyor system
directly from the port to the APGENCO power plant for transporting the same. KPCL has also
entered into agreements with AP GENCO for assured coal traffic at the port.
Other power plants coming up in the vicinity of Krishnapatnam port and who plans to use the
same for importing coal are Vikas Power Private Ltd (540 MW, 2 million tonnes), Simhapuri
Energy Private Limited (540, 2.4 million tonnes), Navayuga Engineering Ltd (1900 MW, 6.7
million tonnes), BBI Power Ltd (520 MW, 1.8 million tonnes), GVK Power Limited (500 MW,
1.8 million tonnes).
For the purpose of financial projections in the base case scenario that also takes into account
various delays in implementation of above mentioned plants etc it has been considered that
KPCL would handle about 35 million tonnes of coal annually.
Hinterland Cargo
Any port serving its immediate hinterland has a distinct location advantage compared to its
competitors. Similarly, Krishnapatnam will be the only available alternative to the various
existing and potential industries proliferating in its vicinity. The major such cargo targeted is as
under:
Granite
India is one of the few countries in the world possessing a wide spectrum of dimensional stones
i.e. Granite, Marble, Sandstone, Limestone, Slate, Quartzite etc., and these dimensional stones
are considered to be the major export commodity in India. Karnataka, Andhra Pradesh and
Tamilnadu are the three major granite-exporting regions in India. On the east coast granite
exports are primarily handled at Visakhapatnam, Kakinada, Chennai & Tuticorin.
Visakhapatnam Port primarily handles granite coming from northern districts of Andhra Pradesh.
Kakinada is presently receiving granite cargo from Ongole region. However a significant volume
of granite produced in Andhra Pradesh is moving to Chennai and other ports, which provide
better frequency of vessels and good rail connectivity. Krishnapatnam being strategically located
in the Nellore district can attract significant amount of granite cargo from Ongole; Kadapa and
35

Anantpur region, which are presently being handled at Kakinada / Chennai port mainly because
of the distance factor. The rail connectivity at Nellore reduces the distance from Ongole to
Krishnapatnam as compared to Kakinada by 250 Kms. Rail connectivity is considered for
transportation of granite blocks as they are heavy cargo and weight of single block could range
from 25 to 50 tones or more. Moreover Krishnapatnam would also provide adequate facilities in
terms of berth, stockyard and cranes for facilitating granite exports.
Barytes
Andhra Pradesh has large reserves of Barites and accounts for 95% of barytes production in
India. These reserves of barytes are concentrated in Cuddapah, Prakasam and Nellore districts of
Andhra Pradesh. Presently Chennai port is handling almost entire Barytes exports generated
from Andhra Pradesh & adjoining regions. Chennai has an advantage over Krishnapatnam port
in terms of rail distance. To overcome the same Krishnapatnam has signed an MOU with Rail
Vikas Nigam Ltd. for developing a rail route between Obulavaripalle and Krishnapatnam, which
is going to be operational by 2010/11. In addition to this, the distance disadvantage could be
marginalized to a great extent by providing a deep draft facility, which would facilitate handling
of larger parcel size vessels, thus bringing down the shipping costs. Further the port would also
provide quay cranes for loading of barites thus providing an option of using gearless vessels.
KPCL would also provide large plots to be used as stockyards by exporters. Based on the above
factors, it is clear that Krishnapatnam Port will be able to secure a significant portion of barites
exports.
Iron & Steel
The locations, which are south of Hyderabad, can be considered as the primary hinterland of the
Krishnapatnam port for steel related import and exports. Steel companies, which are in Bellary
Raichur Nalgonda region of Karnataka & Andhra Pradesh, will provide export cargo to
Krishnapatnam. Moreover, Krishnapatnam can attract more and more share of its own hinterland
because of the logistical connectivity it provides to its end users like Brahmani Steel and SBQ
Steel. Further, the number of foundries of Western Andhra Pradesh and Eastern Karnataka
imports Iron scrap as their raw materials. Krishnapatnam port will be preferred as a port due to
its various advantages.
36

Agri-Commodities
Krishnapatnams immediate and secondary hinterland is one of the major rice producing regions
accounting for approximately 30% of rice production in Andhra Pradesh. It has a significant
share in non-basmati rice exports from India. Currently, Kakinada anchorage port is the main
gateway for rice exports from the region. Considering the proximity of Krishnapatnam port from
various rice producing districts, it is estimated that a significant volume of rice exports from its
immediate hinterland could shift to Krishnapatnam. As far as wheat imports are concerned, the
actual volumes would largely depend on government policies and domestic production. Further,
the estimated wheat import traffic on the East coast of India is likely to be shared by multiple
ports. Krishnapatnam is expected to handle close to 0.8 m tones of food grains traffic by 2020-
21 from 0.3 million tonne in 2008-09.
Fertilizers
Historically, India has been an importer of fertilizers with growth in production capacities
hampered by unavailability of raw materials, unfavorable pricing policies and rising input costs.
As per the provisional estimates, Indias fertilizer production in 2007-08 declined to 32.7 million
tones, whilst the fertilizer imports increased to almost 14.3 million tones (~44% of total
production). The port, in case of Urea imports, is primarily chosen on the basis of its proximity
to the actual consumption centers and the available infrastructure for handling and storing
fertilizers. Currently, on the East coast of India, fertilizer importers are facing severe constraints
in terms port capacity and are looking for alternate ports facilities. As per the consultants
estimate, Krishnapatnam can become a good alternative to Chennai, Visakhapatnam, Kakinada
to serve Southern Andhra Pradesh, North and East Karnataka and Northern Tamil Nadu. It is
expected that due to logistical advantage, coastal states should have higher propensity to import
fertilizers than land locked states to overcome the demand supply gap. Fertilizer imports in 2007-
08 in Krishnapatnams immediate and secondary hinterland were around 35% of the total
consumption, as compared to a national average of 30%. On this basis, fertilizer imports in
Krishnapatnams hinterland can be estimated at around 3.9 million tones over the same period.
Container Traffic
37

Indias container traffic has been growing at a compound average growth rate (CAGR) of 14%
over the past decade. The major containerized commodities driving volumes in India are textile,
automobile, auto components, engineering and capital goods. Container handling capacity in
India is set to increase from over 7.7m TEU in 2006-07 to around 31.5 m TEU by 2019-20.
Currently, the share of Northern and North West hinterland region in India container traffic is
around 66.2%. However, with the expected growth in the East Coast traffic, this share is likely to
move down to around 60% by 2020-21.
Central east coast, which is the immediate or primary hinterland for the Krishnapatnam port, is
vast and most complex in terms of traffic movement. The main centers in this hinterland are
Nagpur, Hyderabad, Guntur, Kakinada and Visakhapatnam. The major cargo generated from
these regions is listed down as under:
o Nagpur (about 53,000 TEU p.a.) - Steel, Yarn, Chemical, rice, castings and waste paper,
heavy metal scrap, pulses, raw cotton and industrial chemicals. Most of the cargo is
handled through JNP although; Chennai handled a miniscule in FY 2007.
o Hyderabad (about 60,000 TEU p.a.) Export commodities like granites, electrical and
electronics, paper and paper boards, agro and food products, pharmaceutical products.
Similarly, major import commodities are asbestos fibre, chemicals, pharmaceuticals,
machinery and equipments, building material and sanitary ware etc. 30% exports and
20% imports of Hyderabad transit via Chennai, so for Krishnapatnam port this container
movement will be the easiest to tap.
o Guntur (about 36,000 TEU p.a.) Export items like tobacco, spices, cotton, granite, coffee
and processed food which constitute about 90% of the trade. Import items are Coffee
beans & Food pulp only. Most of the trade is routed through Chennai currently.
o Kakinada (about 8,000 TEU p.a) equally handled by Chennai & Visakhapatnam.
o Lower East Region i.e. Chennai, Coimbatore, Tuticorin, Salem, Bangalore, Madurai,
Tirupur and Pondicherry - chemical, food stuff, marine products, textiles and fabric, steel,
coffee, stone and granite, pharmaceuticals, electronics, automobile and components,
rubber and rubber products, rice, spices, coffee etc.
38

Krishnapatnam derives an edge over the other ports in the East coast with the following
advantages:
a) Logistical Connectivity by facilitating the rail linkage between Obulavaripalle and
Krishnapatnam via Venkatachalam, which is already under construction.
b) Highly mechanized and better facilities to handle container traffic and enhanced
operational performance with better supporting infrastructure.
c) Lower port tariffs.
d) Chennai container terminal suffering from severe capacity constraint coupled with
logistics bottlenecks within the city limits and also there is a restriction in the transit of
container trailers within the city limits during daylight hours
e) Deep draft facility would facilitate handling of larger size vessels, thus bring in economies
of scale, which is currently lacking at the competing facilities.
f) Adequate infrastructure for faster turnaround of vessels. The proposed quay length of 2.4
kms would provide sufficient berthing space thus resulting in minimum or zero pre
berthing delays.
g) Can effectively serve major cargo centers in AP and Bellary-Hospet region.
h) Can become gateway for East bound traffic of North India.
Based on the above estimates, traffic consultant has estimated conservative container traffic of
1,50,000 TEUs for the Krishnapatnam port.
CHENNAI PORT:
Chennai Port is the 2nd largest Port in India in terms of cargo handled, achieving a key milestone
of 50 Million tonnes in March 2007. The current financial year is the 125
th
year of commercial
operations Port. The Port serves the geographical regions of Tamil Nadu, Pondicherry, South
Andhra Pradesh and parts of Karnataka and has now emerged as hub on the east coast of India.
Major commodities being handled at the Port are Containers, Automobiles Exports, POL, Iron
Ore, Coal, Fertilizers (products and raw materials), and general cargo items. The total quay
length available is around 5.5 km. It has in all 24 berths spread over 3 docks i.e. Ambedkar
39

Dock, Jawahar Dock and Bharathi Dock. The maximum draft available at ChPT is 17.4 m at
some of these berths. There is 7.0 km of entrance channel with the depth of outer channel being
19.2 m and that of the inner channel being 18.6 m. The Port has a total land area of 240 ha
(approx.). Chennai Port was the first port to start container handling operations in 1983 which
were handed over to CCTL in 2001 for operating under BOT basis. A second container terminal
has recently been awarded to PSA SICAL at Ambedkar dock recently to augment the container
operations.

PORT LAYOUT AND INFRASTUCTURE:
Chennai port was the second smallest in the country measured by surface area, encompassing
only 274 hectares
.
Chennai port area is divided into north, central and south zones and fishing
harbours. The port has 26 alongside berths, including 21 deep-drafted berths and 2 oil jetties, in
the 3 docks, viz., Dr. Ambedkar Dock, Satabt Jawahar Dock, and Bharathi Dock along with the
container terminal, and draft ranging from 1216.5 m (3954.1 ft). Dr. Ambedkar Dock has 12
berths, Jawahar Dock has 6 berths, Bharathi Dock has 3 berths (for oil and iron ore), the
container terminal has 3 berths and the moorings has 1 berth. The berths can handle containers as
well as liquid and dry bulk and breakbulk cargoes. The approach channel to the port is 6,700 m
(22,000 ft) long, and the turning basin is 560 m (1,840 ft) in length
.
A total of 9 well-lit channels
marks buoys for the approach channel.
Region Water spread Land area No. of berths
Inner harbour 218 acres 413 acres 16
Outer harbour 200 acres 100 acres 7
Total 418 acres 513 acres 23
The Jawahar Dock has six berths with a total length of 1,310 m (4,300 ft) and maximum
permissible draft of 10.4 m (34 ft) and 11 m (36 ft). All berths are 218.3 m (716 ft), and half of
them have maximum draft of 10.4 m (34 ft). The dock mainly handles coal, fertilizer, iron ore
lumps, pellets, edible oil, and phosperic acid.
The Dr. Ambedkar Dock has 13 berths with a total length of 1,676 m (5,499 ft) and maximum
permissible drafts from 8.512 m (2839 ft). The longest berth is 246 m (807 ft) long with
40

maximum draft of 9.5 m (31 ft). Berth No. 7 is 198 m (650 ft) long with maximum draft of 8.5 m
(28 ft), whereas Berths 8, through 12 are each 170.6 m (560 ft) and have maximum draft of 11 m
(36 ft). Berth 14 is 179 m (587 ft) long with maximum draft of 9.5 m (31 ft).
Berths 18 and 19 are naval berths. The dock has car and cruise terminals and chiefly handles
general cargo, cars, granite, steel, and food grains. The Bharathi Dock contains three berths with
total quay length of 917.2 m (3,009 ft), with berths ranging from 274.3 m (900 ft) in length with
maximum permissible draft of 16.5 to 338.9 m (54 to 1,112 ft) in length with maximum draft of
14.6 m (48 ft). The dock has three terminals, namely, container terminal, iron ore terminal, and
oil terminal. It mainly handles containers, iron ore, and POL (petroleum, oil and lubricants).
The oil terminals at the port's Bharathi Dock (BD1 and BD3) can accommodate tankers to
100,000 dead weight tonnage (DWT), and a third berth can handle tankers up to 280.4 m (920 ft)
and 140,000 DWT. Berth BD1 can accommodate ships to 108.1 m (355 ft) long. The oil
terminals have capacity to handle 12 million tons of cargo per year and to pump 3,000 tons of
crude oil and 1,000 tons of petroleum products per hour. Each berth is equipped with five marine
loading arms, and the berths have pipelines to convey crude oil, white oil, and furnace oil.
The port handles Suezmax tankers of up to a draft of 17 m at BD3 during day light, high tide as
the per the present navigational practice and also during night hours subject to fulfilment of
safety considertions on a ship-to-ship basis.
The iron ore terminal, which can handle 6 million tons per year and can load iron ore at a rate of
6,000 tons per hour, is also located at the Bharathi Dock. Berth BD2 can accommodate ore
carriers up to 280.4 m (920 ft) in length. The terminal's separate receiving and shipping lines can
function as an interconnected system. The terminal is served by rail lines and includes an ore
stock yard with capacity for 544,000 metric tons.
The container terminal has four berths with a total quay length of 885 m (2,904 ft) and maximum
permissible draft of 13.4 m (44 ft). With capacity to handle fifth-generation container vessels,
three of the four berths are 200 m (660 ft) long, and one is 285 m (935 ft) long. The berths are
served by seven quay cranes, including five super-post-Panamax and two post-Panamax cranes,
and 24 gantry cranes.
41

Operated by Chennai Container Terminal Private Limited, the container terminal has capacity for
950,000 TEUs. The container yard has 3,960 ground slots and 240 reefer plug points. The
terminal contains 24 container freight stations with warehouse storage and offers 24-hr customs
inspection and clearance facilities. The container terminal has direct services to Europe, China,
the United States, Korea, Thailand, the Mediterranean region, and West Africa.
The warehousing and storage capacity available at the port is as follows:
Type Nos. Area (sq.m)
Covered
Warehouses 12 65,686
Transit sheds 8 36,000
Covered area for FCI 6 43,450
Container freight stations 2 12,600
Open
Open space 3,25,000
Container parking area 1,30,000

42

Dock/Terminal No. Name of
berth
Type Length
(m)
Permissible
draft (m)
Remarks
Jawahar Dock 1 JD-1 Food
grains/general
218.33 11.50 12.0 m on
HW subject
to
the vessel
reducing the
draft
to
permissible
draft of
the berth
below low
tide.
Transit shed
attached
2 JD-3 Food
grains/general
218.33 11.50 Transit shed
attached
3 JD-5 Food
grains/general
218.33 11.50 Transit shed
attached
4 JD-2 Coal/other liquid
bulk
218.33 11.50
5 JD-4 Coal 218.33 11.00
6 JD-6 Other ores/coal 218.33 11.00
Dr. Ambedkar
Dock
7 NQ Passenger/general 198.00 8.50
8 WQ-1 General/other
liquid bulk
170.60 11.00
9 WQ-2 General 170.60 12.00
10 CB General 170.60 12.00 Transit shed
attached
43

11 WQ-3 General 170.60 12.00
12 WQ-4 Fertilizer/general 170.60 11.00 11 m up to
795 m;
9.5 m up to
810 m
13 SQ-1 Fertilizer/general 246.00 9.50
14 SQ-2 Fertilizer/general 179.00 9.50
15 2nd CT-1 -- 12.0
16 2nd CT-2 -- 12.0
17 2nd CT-3 -- 12.0
18 Naval
Berth
North
60.00 09.00
19 Naval
Berth
South
140.00 12.00
Bharathi Dock
(oil & iron ore)
20 BD-1 Oil 338.94 14.0
21 BD-3 Oil 304.00 16.50 17.0 m
during HW;
Between
extreme
dolphins
22 BD-2 Iron ore 274.32 16.50
Container
Terminal
23 CT-1 Containers 200.00 13.40 Container
freight station
24 CT-2 Containers 200.00 13.40 Container
freight station
25 CT-3 Containers 200.00 13.40
26 CT-4 Containers 285.00 13.40
44

The port handles a variety of cargo including iron ore, coal, granite, fertilizers, petroleum
products, containers, automobiles and several other types of general cargo items. Due to the
increase in container traffic, a second container terminal was planned and tender works given to
PSASical. It has asked for support for a mega container terminal. The terminal would be the first
deep-water terminal of its kind in India and would be able to handle ultra-large container ships of
13,000-15,000 TEUs capacity and length exceeding 400 m (1,300 ft). The management of the
container terminal was taken over by P&O Ports of Australia. This has a volume growth of 20
per cent per year and has 59 per cent of the market share of South India. It has services to
Singapore, Malaysia, Thailand, Myanmar, Sri Lanka, Korea, China, Mediterranean, Europe,
Australia and the United States.
The port has a current depth of 17 m (56 ft) and is capable of handling fourth-generation vessels
up to 150,000 DWT. It is going through an expansion and will have a depth of 1822 m (5972
ft), a continuous quay length of 2 km (1.2 mi) and back-up area of around 100 ha (250 acres).
Two new breakwaters for a total length of 4 km (2.5 mi) will be constructed one as extension
of the existing outer arm and the other extending from the fishing harbor breakwater. The
consequent silting will reclaim about 300 ha (740 acres) of land. The mega terminal will be built
on a 100-hectare (250-acre) portion of this land The terminal will have a continuous quay length
of 2 km (1.2 mi) with 1822 m (5972 ft) side along draft, capable of handling ultra-large
container ships carrying over 15,000 TEUs. This will help it handle the latest generation vessels.
Though the port is largely a container port, it has strategic importance as 3 service berths are
allotted to the Indian Navy.
The approach channel to the port has two sectionsthe entrance channel within the protection of
outer arm and the outer channel beyond the protection of outer arm. The total length of the
Approach
Channel
Zone I 750.00
Zone II
to Zone
VII
5950.00
Turning
Circle
560.00
45

entrance channel is 7 km. The width of channel gradually increased from 244 m to 419 m at the
bent portion, then maintains a constant width of 305 m. The depth of the inner and the outer
channels are 18.6 m and 19.2 m, respectively, below chart datum, with a swell allowances of
3m.The entrance is 350 m in Bharathi Dock and 125 m in Dr. Ambedkar Dock. The draught in
the navigational channel is maintained by dredging approximately 1 million cubic meters
annually.
CHENNAI CFS:
S.No CFS CODE NAME OF THE CFS
1. INMAA1AGL1 ALL CARGO GLOBAL LOGISTICS LIMITED
2. INMAA1ASS1 A.S.SHIPPING AGENCIES PVT. LTD.
3. INMAA1BLC1 BALMER LAWRIE
4. INMAA1BNL1 BINNY LTD CFS
5. INMAA1CON1 CONTAINER CORPN OF INDIA LTD
6. INMAA1COW1 CONTINENTAL WAREHOUSING CRPN
7. INMAA1CTO1 CHANDRA CFS & TERM OPERATORS
8. INMAA1CWC1 CWC MADHAVARAM
9. INMAA1CWC2 CWC ROYAPURAM
10. INMAA1CWC3 CWC, VIRUGAMBAKKAM
11. INMAA1CWC4 CWC, CHROMPET
12. INMAA1DRL1 DEVADOSS REDDY LOGISTICS PVT. LTD
13. INMAA1ECC1 ENNORE CARGO CONTAINER TERMINAL
14. INMAA1GDL1 GATEWAY DISTRIPARKS LTD
15. INMAA1GES1 GERMAN EXPRESS SHPNG AGENC I P
16. INMAA1GLO1 GLOVIS INDIA PVT LTD
17. INMAA1ICB1 ICBC LTD
18. INMAA1KSS1 KAILASH SHIPPING SERVICES P LTD
19. INMAA1MRK1 MAERSK INDIA PVT LTD
20. INMAA1OYC1 O YARD CFS
21. INMAA1SDL1 SICAL DISTRIPARKS LTD
46

22. INMAA1SGL1 SUN GLOBAL LOGISTICS LTD
23. INMAA1SHC1 SATTVA HI-TECH & CONWARE P LTD
24. INMAA1SLP1 SATTVA CFS AND LOGISTICS PVT LTD
25. INMAA1STL1 SANCO TRANS LTD
26. INMAA1TCF1 TRIWAY CONTAINER FREIGHT STATION
27. INMAA1TRL1 THIRU RANI LOGISTICS PVT LTD
28. INMAA1VIK1 VIKING WAREHOUSING
29. INMAA1VLT1 VISHRUTHA LOGISTICS LTD

MAJOR CFS:
1. ALL CARGO GLOBAL LOGISTICS LIMITED:
Just 7 Kms from Chennai Port, this is the closest CFS to Chennai Port, with entry from
Ennore Expressway and Thiruvottiyur High Road.
Facilities:
Total Area: 24 acres
Annual capacity of 1,45,000 TEUs
Plot Area: 61,570 sq. mtrs
Open Container Yard: 31,500 sq. mtrs and 29,720 sq. mtrs in new yard
Warehouse: 14,257 sq. mtrs
Well-planned administrative building
Reefer point facilities with available engineers
Customs, Staff and Surveyors under one roof
IT systems and EDI connectivity
Skilled professionals and trained manpower

47

Equipment:
Weighbridge
Generator back-up
Trailers
Forklifts
Reach stackers
Top lifters
Cranes
Safety & Security:
Pilferage-free CFS
Round-the-clock CCTV surveillance manned by trained personnel
Regulated entry of visitors at the gate
Security at gate, warehouse and other areas within the CFS
Adequate firefighting equipment
Regular mock drills for health & safety
High-mast lights for daylight feel
Underground drainage system
2. A.S.SHIPPING AGENCIES PVT. LTD.:
Facilities:
65000 Sq.ft. covered godowns with 1 million sq.ft. Cemented open area for
trouble free movement of trailers, trucks and equipments.
Round the clock security with high compound walls with barbed wire fencing and
high mast floodlits looks like Airport.
Round the clock 24 hours and 365 days service. Cargo unloading, stuffing /
destuffing round the clock.
Stuffing or destuffing in 30 minutes only.
Fully computerised documentation. Fax and Xerox for users.
Computerised weighing machines and 60 MT weigh bridge for packages as well
as containers.
Efficient and well trained manpower to handle any type of cargo.
48

Marked Bays for cargo stacking in order to avoid mix-up with other cargo.
81 Shutters on the godowns so as to stuff 81 containers at a time and capable of
stuffing / destuffing more than 150 TEUs per day.
Empty container yard outside CFS premises for storing empty containers.
4 x 20' & 2 x 40' Trailers for internal movement of containers.
Well-furnished air conditioned office rooms for users.
Uninterrupted power supply with standby Generators.
Reefer Plugs available.
Conveniently located at 16 KM from the port on the Chennai - Bangalore
National Highway and thus avoiding the inbound trucks to enter and get into the
city traffic congestion.
Marked slots for storing Import laden containers linerwise.
Repairing, Cleaning / Washing empty containers.
Customs Preventive Officer available 24 hours.
The first CFS to have EDI connectivity with main Custom House.
The first CFS to have high speed line printer for Customs document printout.
The first CFS to have ISDN Telephone line.
Equipments:
4 Gantry Cranes (60-45-30-15 MT) with standby generators.
Latest attraction 45 MT Gantry Crane can stack containers upto 7 high
5 Fork Lifts each 10 MT (3 TOYOTO + 2 KOMATSU).
6 New Forklifts each 3 MT (SWARAJ / KOMATSU)
2 New Electric Forklifts each 3 MT (MACNEILL)
Tractor and 4 x 20' and 2 x 40' Trailers
TCM Top lifter 45 MT
MITSUBISHI Forklift 45 MT
3 Straddle Carriers "TCM" JAPAN each 25 MT
KALMAR - 15 MT Reach Stacker
ESCORTS - Mobile Crane 10 MT
TUSKER - Mobile Crane 10 MT
49

Importer Pallet trucks 2.5 MT - 6 Nos.
3. CONTAINER CORPN OF INDIA LTD:
Container Corporation of India Ltd (CONCOR) was incorporated in March 1988
under companies Act, and commenced operation from November 1989 taking over the
existing network of seven ICDs from the Indian Railways. The company was setup with
the objective of developing multi-modal logistics support for Indias International and
Domestic Containerized cargo and trade.
Due to the short leads of traffic owing to the geography of the area, the region has
concentrated heavily on developing both rail and road services, and providing value
added services especially in the area of warehousing, LCL movements, air cargo etc.
Bonded trucking services for Export LCL consolidation from, and delivery of
LCL imports to hinterland locations, have been introduced between Chennai, Bangalore
and Coimbatore and all major locations in South India
New achievements:
1. At ICD/WFD an exclusive warehouse has been constructed and commissioned
with all facilities to deal with air cargo including infrastructure to do palletisation.
2. Customs has declared CHTS as bonded area for storage of import containers with
metallic scrap and cashew.
Other salient features:
1. Tondiarpet is the only Hub point in South India with Rail/Road Connectivity to
Major Ports/ICDs
2. Offering competitive rates
3. Lock fast facility for sensitive cargo
4. Bonding facility for LCL Cargo
5. Warehousing of Export cargo
6. Hastle free, Safe, Secure, State of the art Service
7. Trained Labour, Battery Operated FLTs for LCL
8. Office Space for shipping line, NVOCC and Consolidators in the same complex
9. Weighment facility
50

10. On chassis stuffing/De-stuffing
11. Facility for Lashing, Packing, Palletizing etc
12. Transportation from and To port available
13. Warehousing/Quick clearance available at ICD/WFD/Bangalore, Coimbatore,
Tirupur.
14. Warehousing space on Lease available
15. Closed circuit TV at the warehouse for strict security check.
4. CONTINENTAL WAREHOUSING CRPN:
CWCNSL also offers an integrated wareshousing solution across India through Kaveri Warehousing
Pvt. Ltd. Incorporated in 2001, Kaveri Warehousing provides complete logistics services to MNCs, with
pan India presence, covering almost all the state capitals and major cities
Services offered:
Warehouse management
Inventory management
Manpower
Accounting
MIS
Transportation
Distribution
New business initiatives include telecom tower maintenance services and retail distribution for
international and leading domestic retail chains. The company is introducing state-of-the-art
technology for integrating its warehouses across the country.
Achievements
Consistent performance of:
Zero Shortage inventory
On-time delivery without exception
Optimisation of warehouse space
5. SANCO TRANS LTD:
51

Sanco Trans Ltd operates as a logistics company primarily in India. The company provides
various services, such as air cargo, stevedoring, warehousing and distribution, transport,
container terminal, customs clearance, multimodal transport operation/freight forwarding, and
civil engineering. The company offers services through container freight stations in Chennai and
Tuticorin are:
Air cargo
Stevedoring
Warehousing
Distribution
Inland container depot in Salem
Transport and equipment
The Sanco container terminal
Multi modal transport operation
Freight forwarding
Customs clearance
Civil engineering.
The company is having a covered warehouse space of 100,000 sq. ft, open warehouse space
of 60,000 sqft, and having a capacity to store and handle 1,500 TEUs. They cater to clients
like ABN Amro Central Enterprises, Bharat Heavy Electricals, Bharat Petroleum
Corporation, Chennai Petroleum Corporation, Hindustan Petroleum Corporation and several
others. Sanco Trans Ltd was incorporated in the year 1979 as a private limited company. In
the year 1986, the company was converted into public limited company. By this time, the
company has established their niche in the market for the high quality of services in the
Transport and Clearing & Forwarding sector. In April 2001, the company acquired about 9
acres of land together with Warehouse and Administration building for the Container Freight
Station at Chennai. In June 22, 2001, they commenced their operations in the Container
Freight Station at Tuticorin. During the year 2001-02, Sanco Warehousing Pvt Ltd and Sanco
Contracts Pvt Ltd ceased to be the subsidiaries of the company with effect from March 18,
2002. During the year 2006-07, the company acquired one Reach Stacker at a cost of Rs
144.62 lakh and Rubber Tyre Gantry Crane at a cost of Rs 203.50 lakh for increasing their
52

business. During the year 2007-08, the company acquired additional land measuring about
5.40 acres adjacent to the existing plant of operation at a cost of Rs 853 lakh to handle
increased volume of business. Also, they improved their operating fleet by acquiring Reach
Stacker, Fork lifts, Tractors Trailers, Light commercial vehicles at a total cost of about Rs
381 lakh. The company is taking the necessary steps proactively to upgrade their facilities by
increasing the capacity of their container storage yard and attendant requirements of
operating fleet and equipments at an estimated capital cost of nearly Rs 900 lakh.
VISAKHAPATNAM PORT:
Port of Visakhapatnam is one of the leading major ports of India and is located on the
east coast midway between Kolkata and Chennai. The Port has three harbours viz., outer
harbour, inner harbour and the fishing harbour. The outer harbour with a water spread of 200
hectares has 6 berths and the inner harbour with a water spread of 100 hectares has 18 berths.
Bestowed with natural deep water basins, the outer harbour is capable of accommodating
150,000 DWT vessels and draft upto 17 meters. The inner harbour berths are PANAMAX
compatible and are capable of accommodating vessels upto 230 meters LOA and draft upto 11
meters. The Port is catering to the key industries like the petroleum, steel, power and fertilizers
besides other manufacturing industries and playing catalyst role for the agricultural and industrial
development of its hinterland spreading from the south to the north.
During the FY 201011 the Port handled a record quantity of 68.01 million tonnes of cargo. The
Port is equipped with an array of cargo transfer systems. The mechanical ore handling plant
consists of fully mechanized receiving and shipping systems designed to loads iron ore directly
into the vessels through conveyors. The Port is operating its own Railway network of about 200
Kms, which is linked to the Trunk Railways. The Port is well connected to the NH5 by a 4 lane
connectivity road. The Port has Electric Wharf Cranes of capacities ranging from 10 to 20 T and
2 nos., Harbour Mobile Cranes of 140 tonne capacity. Mechanical loading facilities exist for
handling Alumina and fertilisers. The Off Shore Tanker Terminal in the Outer harbour
discharges crude oil directly to the tanks of the Refinery. The Container terminal operated by
Visakha Container Terminal Private Ltd., is the deepest container terminal among major ports
and equipped with modern container handling equipments. The BOT operator, Vizag Sea Port
Pvt., Ltd., is operating two berths (EQ8& 9) in the inner harbour. These berths are equipped with
3 nos., Harbour Mobile Cranes which can handle cargo at 18,000 tonnes per day per crane.
53

VISAKHA CONTAINER TERMINAL PVT. LTD:
The Visakha Container Terminal (VCTPL) was set up under the aegis of Visakhapatnam Port
Trust as a joint venture between DP World and United Liner Agencies of India (Private) Ltd and
commenced operations on 26th June03. This all weather Container Terminal, with a natural
depth of 16.5 metres alongside, is located in the Outer Harbour of Visakhapatnam Port. Located
on the center of the East Coast of India, VCTPL is ideally located to cater to its vast hinterland
covering seven (7) states within 700 KM and extending up to North and North East India. With
an excellent rail and road connectivity established, it is an ideal alternative especially for
shipments to and from Far East and South East Asian regions to Delhi and other nearby ICDs of
Hyderabad, Nagpur and Raipur. VCTPL is equipped with post panamax gantry cranes, modern
RTGs, Reach Stackers and a fleet of modern ITV (Internal Transfer Vehicle) capable of handling
all type of containerized cargo including reefer and out of gauge equipments.
Total Container Traffic handled during 2010-11 is 1,45,426 TEUs.4
CARGOS HANDLED BY VISAKHAPATNAM PORT:
1. Aluminium, Alumina Sow Ingots, Alumina Billetts and Alumina products
2. Asphalt/bitumen, Barytes and Feldspar, Cement clinker (including cement)
3. Manganese Ore
4. Blast furnace slag, Bentonite, Dolomite chips, Fly Ash and River sand
5. Calcined petroleum coke
6. Caustic Soda
7. Cereals, food grains, Pulses and Sugar
8. Charge chrome, Ferro Manganese, Ferro Silicon Silicon Manganese, High carbon
Ferrochrome, and other ores.
9. Chemicals
10. Edible Oils
11. Electrical goods
12. Fertilizers
13. Granite Blocks & Marbles
14. Gypsum
15. Ilemenite sand
16. Limestone
54

17. Liquid Ammonia, Molten Sulphur, Rock phosphate and Sulphur
18. Machinery
19. Molasses
20. All types of Oil Extractions like Soya, Rape seed etc.,
21. Pig iron
22. Steel Products (including scrap) all varieties
23. Styrene Monomar
24. Thermal Coal
25. Timber Logs & Wood items
CONTAINER FREIGHT STAION IN VISAKHPATNAM PORT:
Sravan Shipping Services Pvt Ltd (Container Freight Station):
Sravan CFS commenced its operation in Sep2004 and is situated about 12 KM from the Custom
House. It has about 7 lakh sq.ft of open area and a Godown space of 1 lakh sq.ft. During the
period 201011 it handled about 40,700 TEUs.
Gateway East India Pvt. Ltd.
(A 100% subsidiary of M/s. Gateway Distriparks Ltd.):
Gateway CFS started its operations in Aug2005 and is situated about 14 KM from the Custom
House. It has 60,000 Sq.meters of open area and 2800 Sq.meters of Warehouse area. Volume in
TEUs for 201011 is 28,848 TEUs.
CWCSICAL CFS/ ESSBEE CFS:
(South India Corporation Agencies Ltd.,):
This CFS started its operations in Nov2003 and is situated about 6 KM from the Custom House.
It has 26,800 Sq.meters of open area and 2790 Sq.meters of Warehouse area. Volume in TEUs
for 201011 is about 20,700 TEUs.
CONCOR CFS:
This CFS started its operations in Dec2002 and is situated about 0.5 KM from, the Custom
House. This CFS is spread across an area of 14.22 Acres and has 20,800 Sq.mt of open area and
2000Sq.mt of Warehouse area. Volume in TEUs for 201011 is about 15,025 TEUs.
According to sources, Concor and Sravan Shipping Services plan to set up one more CFS each in
the near future. The central government too plans to set up one CFS in Vizag to cater to the
increasing demand for container services. "The Balmer Laurie CFS is being undertaken as a joint
55

venture between the central government and Visakhapatnam Port Trust (VPT). "We are
finalising the joint venture," said the senior port official. The proposal was made three years ago
but could not be implemented because of land related issues. "The handling capacity details will
be released once the formalities are completed," said the official.
Phase 1 and 2 of the Concor CFS is expected to come up across 80 acres and is likely to handle
around half-a-million TEUs (Twenty-foot Equivalent Units), according to a senior port
official."The new (phase 1) Concor facility will be built with a terminal built across 55 acres
adjacent the Aiyappa temple. We have transferred the land and it will be operational by
October," said the official.
ANALYSIS:
TURN AROUND TIME OF PORTS:
There is a wide range of studies on port efficiency but curiously enough, these studies have never
focused on turnaround times in ports, despite this being considered as a key indicator of
efficiency. More often we see studies in operations research about queuing models of vessels in
relation to port entrance channels and berth allocation and productivity, but there is a drastic lack
of systematic reporting and analyses of ship turnaround times.
TURNAROUND TIME IN VISAKHAPATNAM PORT:
Cargo Traffic Handled 64.6 MT
Average Ship Berth Output 10,600 Tons
Average Turnaround Time 3.91 days
TURNAROUND TIME IN CHENNAI PORT:
Average Turnaround Time 1.69 days
TURNAROUND TIME IN KRISHNAPATNAM PORT:
Average Turnaround Time 1.9 days

TERMINAL HANDLING CHARGES:
Terminal Handling Charges (THC) is the charges collected by terminal authorities at each
port against handling equipments and maintenance. THC varies port to port of each country, as
the cost of handling at each port differs one to another port, depends up on the total cost of port
terminal handling at each location.
56

Normally, Terminal handling charges (THC) for exports is collected from shipper by
shipping lines while releasing Bill of Lading after completion of export customs clearance
procedures. Let the sale contract between buyer and seller be anything, the THC at port of
loading need to be paid at load port only. As per terms of delivery, if buyer has to pay such load
port THC, such THC is paid at load port by either buyers representative or his authorized
agent. In the case of shipments moved from inland destinations other than sea port, the said
THC is collected at same location while releasing bill of lading by carrier. The import terminal
handling charges is collected by shipping carriers at the time of issuing delivery order to
consignee to take delivery of goods.

Port
Container
Size
Container
Type
Cargo
Type THC Currency
Krishnapatnam 20 DRY General 4,310 INR
Krishnapatnam 20 DRY Dangerous 5,550 INR
Krishnapatnam 40 DRY General 6,310 INR
Krishnapatnam 40 DRY Dangerous 8,300 INR
Krishnapatnam 20 REEF General 7,790 INR
Krishnapatnam 20 REEF Dangerous 7,790 INR
Krishnapatnam 40 REEF General 11,005 INR
Krishnapatnam 40 REEF Dangerous 11,005 INR
Chennai 20 DRY General 4,410 INR
Chennai 20 DRY Dangerous 5,189 INR
Chennai 40 DRY General 6,410 INR
57

Chennai 40 DRY Dangerous 7,630 INR
Chennai 45 DRY General 8,069 INR
Chennai 45 DRY Dangerous 9,828 INR
Chennai 20 REEF General 7,890 INR
Chennai 20 REEF Dangerous 7,890 INR
Chennai 40 REEF General 11,105 INR
Chennai 40 REEF Dangerous 11,105 INR
Vizag 20 DRY General 4,830 INR
Vizag 20 DRY Dangerous 6,800 INR
Vizag 40 DRY General 8,700 INR
Vizag 40 DRY Dangerous 10,875 INR
Vizag 45 DRY General 9,660 INR
Vizag 45 DRY Dangerous 11,590 INR
Vizag 20 REEF General 14,530 INR
Vizag 20 REEF Dangerous 18,200 INR
Vizag 40 REEF General 20,700 INR
Vizag 40 REEF Dangerous 24,840 INR


58

TEUs HANDLED:
CHENNAI PORT 2012-13 & 2013-14:

Month Imports Exports Containers in TEU's
Jan-12 31330 15754 142957
feb 33970 17330 110989
mar 36815 18892 129178
april 2621 1676 126007
may 5578 3156 137184
june 8839 4813 131486
july 11812 6570 142002
aug 14660 8170 137457
sept 17539 9588 129757
oct 20080 10913 113961
nov 23074 12508 128239
dec 25796 14100 119580
Jan-13 28673 15663 129975
feb 31459 17199 117763
mar 34375 19029 125868
april 2780 1486 120151
may 5495 2946 123852
june 8388 4445 127347
july 11337 6131 131787
aug 14276 7824 128893
sept 16841 9408 124462
oct 19309 10998 123419
nov 21645 12358 112088
dec 21875 13538 113660



59

KRISHNAPATNAM PORT FOR 2013-13 & 2013-14:

Month Import Export Cumulative TEU's
Jan-12 0 150 150
feb 0 0 150
mar 0 0 150
april 0 0 150
may 0 0 150
june 0 0 150
july 0 104 254
aug 0 0 254
sept 0 48 302
oct 0 57 359
nov 0 461 820
dec 228 979 2027
Jan-13 170 1533
1,703
feb 0 1279
2,982
mar 9 1753
4,744
april 61 2183
6,988
may 129 2005
9,122
june 139 2006
11,267
july 103 2970
14,340
aug 89 3381
17,810
sept 56 3115
20,981
oct 126 3873
24,980
nov 124 3633
28,737
dec 93 4405
33,235




60

VISAKHAPATNAM PORT TRAFFIC TREND:


EXTERNAL FACTORS AFFECTED CHENNAI PORT:
In 1992 Government of India banned iron ore exports and imports in Chennai port which
affected the business of Chennai port and also resulted in empty plots.
In 1995 for the effect of increase in pollution in Chennai port there has been an objection
raised against the coal trading in bulk shipping in Chennai port.
The development of new ports like Ennore, Krishnapatnam and Kakinada had also
effected the trading in Chennai port in various ways.
The tariff rates of Chennai port are comparably high than the newly evolved ports.
INTERNAL FACTORS EFFECTING CHENNAI PORT:
The labor charges in Chennai port are high.
The space management system followed by remaining is much efficient than the Chennai
port.
61

Development of infrastructure like crane productivity and handling capacity is low in
Chennai port. These two factors are not upgrading to the changes in trading like the
vessel handling capacity has been raised from 20,000 tons to 40,000 tons but the Chennai
port crane productivity and technology has not been improved.
Proximity (made choose to nearby alternate ports) has also been an effect to Chennai port
trading.
VESSEL SCHEDULE IN KRISHNAPATNAM PORT:

BOX Svc SCHEDULE: Krishnapatnam to Colombo
Vessel
ETA
INKRI
ETA CMB
LINE / NVOCC Loading in BTL
Colombo Svc
TIGER BRIDGE
V.178S
18 Jul 20 - Jul
Maersk, Safmarine, SCI, HMM,
Evergreen, APL, Smart Marine, Star
Line, Seapol, Trans Asia, Forbes, and
Shreyas
TIGER BRIDGE
V.179S
23 Jul 27 - Jul
TIGER BRIDGE
V.180S
30 Jul 03 - Aug
TIGER BRIDGE
V.181S
06 - Aug 10 - Aug



MSC SCHEDULE: Krishnapatnam to Colombo
This service offers coverage to NWC, SAM, EAF, SAF, WAF, RED SEA, ME, AUS & NZ
EMPTY BOXES ARE AVAILABLE AT KPCT
Vessel ETD INKRI ETA CMB
LINE / NVOCC Loading in
MSC Svc
MSC SIERRA
SI.427R
21 - Jul 23 - Jul
MSC, Evergreen, HMM, Seapol,
Forbes, Trans Asia and Shreyas
MSC SIERRA
SI.428R
28 - Jul 30 - Jul
MSC SIERRA
SI.429R
04 - Aug 06 - Aug
MSC SIERRA
SI.430R
11 - Aug 06 - Aug




62

SEAHORSE / VASI
Vessel ETA INKRI
ETA
YANGON
LINE / NVOCC Loading
PAC AQUILA V.014
27 - Jul 01 - Aug Seahorse / Vasi










Vessel
ETA
INKRI
ETA
Tanjung
Pelepas
ETA
Qingdao
ETA
Xingang
ETA
Busan
ETA
Shanghai
ETA
Nansha
SEA LAND METEOR
V.1411
29 - Jul 06 - Aug 17 - Aug 18 - Aug
22 -
Aug
24 - Aug
28 -
Aug
SEA LAND
MERCURY V.1415
05 -
Aug
13 - Aug 24 - Aug 25 - Aug
29 -
Aug
02 - Sep
06 -
Sep






BTL SCHEDULE: Krishnapatnam to Singapore / Port Klang
Vessel
ETA
INKRI
ETA
PKG
ETA
WPKL
ETA
SIN
LINE / NVOCC Loading in BTL Svc
FRED V.1236
E
01 - Aug
05 -
Aug
05 - Aug
06 -
Aug
CMA CGM, HMM, MSC, OOCL, PIL,
Samudera, Wan Hai, APL, BLPL, Trans
Asia, Adithya, Blue Ocean, Caravel,
Five Knot, Forbes, TLPL, Perma, Sea
Hawk, Seapol and SP Container Line
FRED V.1240
E
15 - Aug
19 -
Aug
19 - Aug
20 -
Aug





63

VESSEL SCHEDULES IN VISAKHAPATNAM PORT:




FUTURE PROJECTS IN VISAKHAPATNAM PORT:
1. PROPOSAL TO HANDLE GROWING TRAFFIC NEEDS:
The Visakhapatnam Port Trust awarded Leighton India the contract to redevelop the
Visakhapatnam Port to enable it to handle growing traffic needs.
The Visakhapatnam Port Trust decided to undertake mechanisation of coal handling
facilities and upgrade the general cargo berth at outer harbour of Visakhapatnam Port to
cater to 200,000 DWT vessels through public private partnership (PPP) on a design,
build, finance, operate, transfer basis . The contract to perform this work was awarded to
64

Vizag General Cargo Berth Private Limited, a consortium comprising Sterlite Industries
Ltd. of Vedanta Group and Leighton India.
The scope of work broadly included planning, engineering, designing, financing,
construction, development, operation and maintenance of the General Cargo Berth to
cater to 200,000 DWT vessels of 300m LOA. The project included the following work:
o Civil, mechanical & electrical works for installation of a suitably designed system
for unloading of coal at the rate of 70,000 TPD via 3 ship un-loaders.
o A dual conveyor system (2.5 km) to a mechanized stack yard for short term
storage.
o A bucket wheel reclaiming and wagon loading system which will load train rakes
of 58 wagons of 60 tonne capacity each at a rate of 1 rake per hour.
o Strengthening and widening of the existing 356m long berth by 21 metres.
o Installation of all footing and foundation work for the above mentioned conveyor
system, construction of transfer towers and soil improvement.
o Foundation work for the reclaiming and wagon loading system.
o Preparatory works for rail link.
The main challenge in execution was the Port Authorities requirement to maintain
operation of the existing berth through the duration of the construction activities.
Work was carried out in two phases with a total construction duration of 16 months.
2. CONTAINER BERTH EXPANSION PROJECT:
The Visakhapatnam port has finally awarded the Rs 820-crore container berth expansion
project to Visakha Container Terminal Private Limited (VCTPL). It is a design, build,
finance, operate and transfer (DBFOT) public private partnership (PPP) project.
Promoted by Dubai Ports World and United Liner Agencies of India, VCTPL, is
currently operating the container terminal at Visakhapatnam port.
The expansion project would help the port handle 1.05 million container boxes from the
existing 0.5 million. The project works include construction of a berth, erection of higher
capacity cranes, handling equipment and reclamation of more than 100 acres, and is
expected to be completed in the next three to four years.
The port is expected to handle more than 270,000 containers this fiscal, up from 80,000
containers it handled in 2008-09.Keeping in mind the growth potential, the Vizag port a
65

year ago had called in for global tenders for the berth expansion project under the PPP.
Companies including VCTPL, Adani port, Navayuga Engineering, Gangavaram port had
shown interest in the project, but only VCTPL came forward to submit the financial bids.
VCTPL has agreed to enhance the revenue sharing from 10.044 per cent to 11.044 per
cent.
However, the port has agreed to go for 11.044 per cent share proposed CTPL as the final
cost estimates of the project rose to Rs 820 crore from the initial Rs 633.11 crore. This
was due to rupee depreciation against the US dollar, diesel, power costs coupled with
presumed higher capacities, low tariffs, traffic uncertainty, project viability, said VCTPL
sources.
3. KAKINADA CORRIDOR:
The Petroleum, Chemical and Petrochemical Investment Region (PCPIR) project
proposed to be developed between Visakhapatnam and Kakinada, is gaining momentum
with the feasibility of various coastal roads being examined by the International Finance
Corporation (IFC).
M/s Reliance Industries is in advanced stages of laying a link road in the PPP mode from
Tallarevu to Gadimoga village, about 30 km from Kakinada, where it is constructing an
on-shore terminal to receive gas extracted from the K-G basin. The Vizag-Kakinada
PCPIR is proposed to be developed in 250 sq. km (approximately 62,000 acres),
comprising manufacturing facilities for the petrochemical industries, other logistical
infrastructure and administrative and residential areas. The PCPIR project also includes
upgrading of Visakhapatnam and Rajahmundry airports, Visakhapatnam port and
Kakinada deep water port, logistic hubs containing inland container depots, container
freight stations and warehouses, captive power plants and water supply schemes.
Another major component of PCPIR is the proposed refinery of Oil and Natural Gas
Corporation Limited having a revised capacity of 15 mtpa and costing nearly Rs 25,000
crore. The total distance that has been identified is 138 km, but will implement it in a
phased manner. So, in the first phase, completing the road from Visakhapatnam to
Gangavaram port in the next two years
66

Mega hubs to change face of Industrial Landscape
With a focus on infrastructure, Andhra Pradesh, Gujarat, Karnataka, West Bengal, Orissa
and Tamil Nadu are creating investment hubs that have the potential to collectively
attract Rs 10 lakh crore in investments and create 43 lakh jobs in the next several years.
Each of these investment hubs that span several hundreds of square kilometers will have
urban utilities like housing complexes, cinema halls, schools and hospitals and major
industries in oil, chemicals, petrochemicals and several downstream industries in their
heart. The investments into external infrastructure like roads, sea ports, airports and rail
network would be made by the union government while power to these massive
industries would be provided by the state government.

Besides their own investments into utilities like hospitals and schools, the state
governments will also strike partnership deals with builders and other private players to
set up housing complexes and other facilities.
Industrial investments would come from state-run and private firms domestic as well
as global. Chemicals and fertilisers minister Paswan, whose ministry conceptualised these
massive investment hubs, said that the first PCPIR is likely to come up in Andhra
Pradesh, followed by one in Gujarat.
In the 603.6 sq km petroleum, chemical and petrochemical investment region (PCPIR)
traversing the Visakhapatnam-Kakinada region in Andhra Pradesh, the central
government would pump in about Rs 5,974 crore to build roads, rail links, rail freight
stations, airports and cargo complexes while the state would spend Rs 2,132 crore to
provide mainly water and power supply, it is understood. A larger chunk of infrastructure
investment of Rs 10,565 crore would come from private investors, as per the proposal the
state government has prepared, it is learned.
67

Gujarat is expected to invest Rs 18,691 crore in infrastructure including funds from
central government and private players. Karnataka, which is creating a PCPIR in 250 sq
km and anticipating an industrial investment of Rs 2.3 lakh crore, will spend Rs 10,147
crore in infrastructure. This includes contribution from the central government and
private developers. Orissa, which will create a 284 sq km PCPIR, will get infrastructure
investments of about Rs 15,273 crore from all the three sources. The Left-ruled West
Bengal will have a total infrastructure investment of about Rs 25,750 crore, while Tamil
Nadu will pump in Rs 6,189 crore.
The Andhra Pradesh PCPIR has the potential for industrial investments of Rs 3,43,000
crore while Gujarat has an investment commitment from private players as well as central
and state governments of Rs 50,000 crore. The West Bengal PCPIR has the potential to
attract industrial investment of about Rs 80,000 crore and the one proposed in Tamil
Nadu has the potential for Rs 24,178 crore.
In Andhra Pradesh, global majors like Total SA of France, Mittal Energy Investments,
GAIL India, Oil India and oil refining and marketing major Hindustan Petroleum Corp
(HPCL) are expected to invest Rs 32,000 crore. This consortium will set up a 15 million
tonnes a year (mtpa) refining-cum-petrochemical complex. Besides this, HPCL is
expected invest another Rs 10,000 crore to double its existing 7.5 mtpa refining capacity
in the region.
Public sector refining major Oil & Natural Gas Corp (ONGC) would invest Rs 31,000
crore to set up a refinery and polypropylene unit in Kakinada SEZ. The state government
anticipates exports of Rs 58,000 crore a year and tax receipts of Rs 46,500 crore a year
from this PCPIR, which is expected to account for 9% of the total value of goods and
services produced in the state.
Creating sophisticated infrastructure across the country to facilitate industrial
development may take time. The governments idea, therefore, is to select regions in the
coastal area, where port connectivity could be provided easily to such industrial hubs in
addition to upgradation of other modes of transport. Removing the need for multiple
clearances and providing infrastructure would remove the two major hurdles for
industrial development.
4. Nepal connectivity through Visakhapatnam terminal:
68

Nepal was keen on using the Visakhapatnam terminal for handling its export and import
cargo of containers, coal, fertilisers and project cargo as a backup in the short run and as
a full-fledged gateway in near future.
Speaking at an interactive session with stakeholders, including the VPT, private terminals
operating in the port, shipping agents, stevedores, custom house agents, Indian Railways
and CONCOR, among others said that high-level meeting at the level of Prime Minister
had been held in 2009 and exchange of information subsequently at different levels had
taken place in this regard. He was accompanied by Second Secretary Sanat Kumar Joshi.
The exim cargo of Nepal was being handled through notified gateway ports of Kolkata
and Haldia. Nepal had stabilized politically and socially and their GDP had grown at
about 4.5 per cent during 2013-14 and their economy was likely to grow at about 8 to 10
per cent during the next 7-8 years, he added.
VPT Chairman T Krishna Babu called upon the stakeholders to bring in synergies and
provide an effective solution for handling exim cargo of Nepal in terms of cost and
efficiency. Deputy Chairman G V L Satya Kumar explained the advantages of handling
Nepals cargo through the port.
The representatives from CONCOR, Indian Railways and VCTPL explained that it would
be economical to route the exim cargo of Nepal through the port of Visakhapatnam.
The port Chairman requested the Consul General to notify the port of Visakhapatnam as a
gateway port for the exim cargo of Nepal and promised to provide efficient and cost
effective service.
Hinterland connectivity of Visakhapatnam port:
Like any other port the Port of Visakhapatnam also serves main outlet for:
Immediate hinterland the region in and around the port and city of Visakhapatnam formed
due to the existence of industries related to oil refinery, steel/alumina manufacturing,
palletisation plant, fertilizer factory and so forth.
69

Distant hinterland other states such as Jharkhand, Bihar, Uttar Pradesh, Orissa, Madhya
Pradesh, Andhra Pradesh, Eastern Maharashtra, Tamil Nadu and to some extent Karnataka.
The hinterland is rich in mineral resources such as iron ore, lime stone, coal, bauxite etc. which
resulted in the establishment of number of mineral based industries like steel plants, fertilizers
plant, alumina, cement plants in the hinterland of the port.
Indian Ports have traditionally focused on the terminal operations (seaside activities) than their
interface with hinterland (landside activities). Rail and road transport is one of the important
elements of entire import/export logistics chain. Adequate port connectivity to hinterland is very
important as it helps smooth movement of cargo to and from hinterland (origin/destination). In
case of Visakhapatnam port, the railway system assumes greater importance as out of total cargo
handled at the port about 60-65 % cargo is rail borne cargo. Presently the road borne cargo traffic
is about 10-15 % which is less as compared to the rail borne traffic but it is likely to increase in
future due to increase in general cargo.
VPT handled about 85 Mt by 2012-13. The increase in cargo can be handled properly only if the
port connectivity is adequate. Poor connectivity has an adverse effects on the competitiveness of
ports vis--vis other ports in the neighborhood. It is therefore imperative for the port to ensure
seamless flow of traffic.










70

CONCLUSION
According to the study there are wide range of external and internal factors effecting Chennai
port due to which the trade in Chennai port has been diverted to many east coast ports
surrounding Chennai.
Visakhapatnam port and Krishnapatnam port are the two ports which are benefited by the
diversion of trade from Chennai port. By the analysis the terminal handling charges and
turnaround time of Krishnapatnam port are low compared to Visakhapatnam port. The trading
from Visakhapatnam port has been shifted to Krishnapatnam port for the low charges.
SUGGESTIONS:
Government support, low tariff charges and proximity are the factors of Krishnapatnam
port trade development so Visakhapatnam port should focus on these factors.
Visakhapatnam port has the capability of overcoming its affecting factors and can sustain
in the market with the future projects.
The recent union budget has given huge importance to Visakhapatnam port by laying
corridor between Chennai port and Visakhapatnam port.
Future projects and proper customer relationships can lead to increase in the
Visakhapatnam port business.














71

REFEERENCES: