Você está na página 1de 83

CHAPTER 1

Introduction

Page | 1
Executive summary

In an era of economic globalization ports are evolving rapidly from being traditional land/sea
interfaces to providers of complete logistics networks. This has been a massive link in
establishing trade across countries i.e transferring goods from one place to another. Moreover
ports have proven to be a major determinant for the socio-economic growth of a country interms
of facilitating development of infrastructure, and establishment of businesses and firms which
provide jobs to lakh’s of people in every country. And over the years there has been fierce
competition between countries to develop their port infrastructure especially container terminals
and related facilities, and to expand their port hinterland through introducing free trade zones
with a hope of developing hub ports and international logistics centres to attract the best of deals
to the respective port which translates to economic benefits.

India faces stiff competition from the likes of Singapore , Oman which offers superior
infrastructure and Srilanka which currently handles a large majority of the Indian transshipment
cargo. In order to a bring about a change to this scenario India needed to develop container
related infrastructure to be competitive in the container transshipment sector which has seen a
boom of late.

In keeping with this plan on the 16th February 2005, Dubai Ports World announced that it has
formally signed an agreement with the Cochin Port Trust (CoPT) to construct, develop and
operate an International Container Transshipment Terminal (ICTT) – An India Gateway
Terminal – at Vallarpadam. Vallarpadam’ is the largest single operator container terminal
currently planned in India and the first in the country to operate in a special economic zone. The
new terminal will make Cochin a key centre in the shipping world reducing India’s dependence
on foreign ports to handle transshipment. With the commencement of the terminal India will
occupy a competitive position on the sea trade map with the likes of Singapore, Oman and
Srilanka. Hence it would be useful to make a study comparing the likes of the above mentioned
ports on various parameters to understand the level of competition and where India stands in
today’s world of sea trade.

Page | 2
Background of the study
Ports play an important economic role in maritime nations by facilitating foreign trade. They
constitute an important economic activity in coastal areas. The higher the throughput of goods
and passengers year-on-year, the more infrastructure, provisions and associated services are
required. These will bring varying degrees of benefit or disadvantage to the local and regional
economy and to the environment. Ports are also important for the support of economic activities
in the hinterland since they act as a crucial connection between sea and land transport. They are
thus catalysts for social and economic development in any maritime nation. Maritime
transportation has been the life-blood of world trade since time immemorial. Though new modes
of transportation have grown enormously shipping shall continue to occupy the lions share in
world trade in the foreseeable future because of the economics inherent in sea transportation. The
development of port infrastructure provides a positive impact on the economic and social growth
of society.
Increasing competition among hub ports has been growing as previously less developed ports in
countries undergoing national economic growth have been developing port infrastructures to
compete with the existing hub ports. As competition among ports has been increased, shipping
alliances and major shipping lines have been taking advantage of their growing power in
negotiating concessions for dedicated terminals and/or in deciding ports of call. Ports are losing
thier bargaining power and have been forced to provide deep water, quality services,
productivity, efficiencies, infrastructures including rails and roads, all of which are frequently
demanded by shipping lines with bargaining power created by great amounts of container
volume. When a port fails to meet the shipping line’s demand, it may lose its major clients. Ports
and container terminal operators are under strong pressure from their clients, which means they
are forced to take part in the competition among ports by actively enhancing productivity and
investing a great amount of money in order to stay in the game.
The demands of shipping lines (customers of ports) exercising their growing bargaining
powerfor lower port tariffs, quick turnaround times, accommodation of super large ships and
many other quality services, and industry trends towards containerization, super larger
ships,consolidated port operations, and concessions to global operators allow for a
straightforward definition of the conditions for success as hub port:
_ location (proximity to major world routes)
_ quick turnaround time

Page | 3
_ quality services with efficiencies and productivity
_ reasonable costs
_ ability to accommodate super larger ships – deep water, advanced equipment
_ excellent networks covering neighbouring feeder ports
_ existence of logistic cluster supporting value-added logistics activities
_ no red tapes and no burdensome paper works
_ advanced information technology
_ intermodal infrastructures- access to rail, air and road distribution networks
_ local markets producing freight volume.
With the new container transshipment terminal coming up at vallarpadam, to be the largest in
India cochin port is preparing itself to be the premier or hub port of india. Since ports have a
major role in attracting investments into a country and resulting in the economic and social
development in the region there is stiff competition between major ports to attract the best of
deals in import , export , transshipment etc.. With the commissioning of vallarpadam container
transshipment terminal cochin port will be providing stiff competition to the other container
ports in the Indian ocean region like Colombo port(Srilanka) , Salalah port(Oman) and the port
of Singapore(Singapore). Hence it is imperative that a study is conducted on the economic gains
the new container terminal will bring to India and the competitive features that will give cochin
port an edge over the other major container ports in the region in attracting major share of
container cargo.

RESEARCH METHODOLOGY

Page | 4
The various objectives of the this study was
 To analyze the impact of vallarpadam terminal on the economic growth of
india
 To do a comparison study between vallarpadam terminal with major hub
ports in the Indian ocean region.

Primary Data
The Primary data are collected through informal personnel interviews with the
various officials of Cochin Port Trust, officials of Dubai Port World, Shipping Lines, Shipping
agents etc.
Secondary Data
The main method of data collection is secondary in nature. The data are
collected from the Administration report, Budget report and annual report of Cochin Port Trust,
report of Consultant Engineering Services, company records of Dubai Port World and Cochin
chamber of commerce and from the internet.
Analysis
The secondary data collected was analysed with data analyze tool, Microsoft Excel.

Page | 5
CHAPTER 2
PORT AND SHIPPING CONCEPTS

Backhaul
To haul a shipment back over part of a route that it has already traveled; return movement of
cargo, usually opposite from the direction of its primary cargo destination.
Ballast keel
A heavy keel fitted to vessels to lower the center of gravity and improve stability.
Ballast tanks
Compartments at the bottom of a ship that are filled with liquids for stability and to make the
ship seaworthy.
Beam
The width of a ship.
Berth

Page | 6
A place in which a vessel is moored or secured; place alongside a quay where a ship loads or
discharges cargo.
Berth term
Shipped under a rate that does not include the cost of loading or unloading.
Berth dues (or quay dues or dockage)
Charges for the use of a berth. Typically assessed based on the duration of a vessel’s stay and
length overall (LOA).
Bill of lading
A document that establishes the terms of contract between a shipper and a transportation
company. It serves as a document of title, a contract of carriage, and a receipt for goods.
Bond port
Port of a vessel’s initial customs entry to any country; also known as first port of call.
Bonded warehouse
A warehouse authorized by customs authorities for storage of goods on which payment of duties
is deferred until the goods are removed.
Breakbulk
Loose, non-containerized cargo stowed directly into a ship’s hold.
Broker
A person who arranges for transportation of loads for a percentage of the revenue from the load.
Build-operate-transfer (BOT)
A form of concession where a private party or consortium agrees to finance, construct, operate
and maintain a facility for a specific period and transfer the facility to the concerned government
or port authority after the term of the concession. The ownership of the concession area (port
land) remains with the government or port authority during the entire concession period. The
concessionaire bears the commercial risk of operating the facility.
Build-own-operate-transfer (BOOT)
A form of concession where a private party or consortium agrees to finance, construct, own,
operate and maintain a facility for a specific period and transfer the facility to the concerned
government or port authority after the term of the concession. The ownership of the concession
area (port land) vests in the private party or consortium during the entire concession period and is
transferred to the government or port authority at the end of the concession period. As with the
BOT, the concessionaire bears the commercial risk of operating the facility.

Page | 7
Bulkhead
A structure to resist water; a partition separating one part of a ship from another part.
Bulk vessel
All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.
Bunkers
Fuel used aboard ships.
Cabotage
Shipments between ports of a single nation, frequently reserved to national flag vessels of that
nation.
Cargo tonnage
Ocean freight is frequently billed on the basis of weight or measurement tons. Weight tons can
be expressed in terms of short tons of 2,000 pounds, long tons of 2,240 pounds, or metric tons of
1,000 kilograms (2,204.62 pounds). Measurement tons are usually expressed as cargo
measurements of 40 cubic feet (1.12 cubic meters) or cubic meters (35.3 cubic feet).
Carrier
Any person or entity who, in a contract of carriage, undertakes to perform or to procure
the performance of carriage by sea, inland waterway, rail, road, air, or by a combination of such
modes.
Cartage
Intraport or local hauling of cargo by drays or trucks (also referred to as drayage).
Chassis
A frame with wheels and container locking devices to secure the container for movement.
Clearance
The size beyond which vessels, cars, or loads cannot pass through, under, or over bridges,
tunnels, highways, and so forth.
Cleat
A device secured on the floor of a container to provide additional support or strength to a cargo-
restraining device, or a device attached to a wharf to secure mooring lines.
Common carrier
A transportation company that provides service to the general public at published rates.
Concession

Page | 8
An arrangement whereby a private party (concessionaire) leases assets from an authorized public
entity for an extended period and has responsibility for financing specified new fixed
investments during the period and for providing specified services associated with the assets; in
return, the concessionaire receives specified revenues from the operation of the assets; the assets
revert to the public sector at expiration of the contract.
Container
Steel or aluminum frame forming a box in which cargo can be stowed meeting International
Standard Organization (ISO)-specified measurements, fitted with special castings on the corners
for securing to lifting equipment, vessels, chassis, rail cars, or stacking on other containers.
Containers come in many forms and types, including: ventilated, insulated, refrigerated, flat rack,
vehicle rack, open top, bulk liquid, dry bulk, or other special configurations. Typical containers
may be 10 feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 feet in
width, and 8.5 feet or 9.5 feet in height.
Container freight station
A dedicated port or container terminal area, usually consisting of one or more sheds or
warehouses and uncovered storage areas where cargo is loaded (“stuffed”) into or unloaded
(“stripped”) from containers and may be temporarily stored in the sheds or warehouses.

Container pool
An agreement between parties that allows the efficient use and supply of containers; a common
supply of containers available to the shipper as required.
Container vessel
Ship equipped with cells into which containers can be stacked; containerships may be full or
partial, depending on whether all or only some of its holds are fitted with container cells.
Container terminal
An area designated for the handling, storage, and possibly loading or unloading of cargo into or
out of containers, and where containers can be picked up, dropped off, maintained, stored, or
loaded or unloaded from one mode of transport to another (that is, vessel, truck, barge, or rail).
Container yard
A container handling and storage facility either within a port or inland.
Contract carrier

Page | 9
Any person not a common carrier who, under special and individual contracts or agreements,
transports passengers or cargo for compensation.
Cut-off time (closing time)
The latest time a container may be delivered to a terminal for loading to a scheduled barge,
vessel, train, or truck.
Daily running cost
Cost per day of operating a ship.
Deconsolidation point
Place where cargo is ungrouped for delivery.
Demurrage
A penalty charge against shippers or consignees for delaying the carrier’s equipment beyond the
allowed free time. The free time and demurrage charges are set forth in the charter party or
freight tariff.
Dock or quay
A structure attached to land to which a vessel is moored.
Draft (or draught)
The depth of a ship while in the water. Measured as the vertical distance between the waterline
and the lowest edge of the keel.
Dredging
Removal of sediment to deepen access channels, provide turning basins for ships, and maintain
adequate water depth along waterside facilities.
Dry bulk
Loose, mostly uniform cargo, such as agribulk products, coal, fertilizer, and ores, that are
transported in bulk carriers.
Electronic data interchange (EDI)
Transmission of transactional data between computer systems.
Feeder service
Transport service whereby loaded or empty containers in a regional area are transferred to a
“mother ship” for a long-haul ocean voyage.
Fixed costs
Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is
carried; for example, terminal leases, rent, and property taxes.

Page | 10
Foreign trade zone
A free port in a country divorced from customs authority, but under government control.
Merchandise, except contraband, may be stored in the zone without being subject to import duty
regulations.
Forty-foot equivalent unit (FEU)
Unit of measurement equivalent to one forty foot container. Two twenty-foot containers (TEUs)
equal one FEU.
Free trade zone
A zone, often within a port (but not always), designated by the government of a country for duty-
free entry of any non prohibited goods. Merchandise may be stored, displayed, or used for
manufacturing within the zone and re exported without duties being applied. Also referred to as
free port.
Gantry crane
A crane fixed on a frame or structure spanning an intervening space typically designed to
traverse fixed structures such as cargo (container) storage areas or quays and which is used to
hoist containers or other cargo in and out of vessels and place or lift from a vessel, barge, trucks,
chassis, or train.
Gateway
A point at which freight moving from one territory to another is interchanged between
transportation lines.
Grounding
Contact by a ship with the ground while the ship is moored or anchored as a result of the water
level dropping, or when approaching the coast as a result of a navigational error.
Harbor dues (or port dues)
Charges by a port authority to a vessel for each harbor entry, usually on a per gross tonnage
basis, to cover the costs of basic port infrastructure and marine facilities such as buoys, beacons,
and vessel traffic management system.
Hold
A ship’s interior storage compartment.
Liner
A vessel sailing between specified ports on a regular basis.
Mixed cargo

Page | 11
Two or more products carried on board one ship.
Mobile crane
General purpose crane capable of moving on its own wheels from one part of a port to another.
Moor
To attach a ship to the shore by ropes.
Panamax
Maximum beam that allows vessels to pass through the locks of the Panama Canal (specifically
used for dry bulk and container vessels).
Pilferage
Stealing of cargo.

Pilotage
The act of assisting the master of a ship in navigation when entering or leaving a port or in
confined water.
Pilotage dues
Fee payable by the owner or operator of a ship for the services of a pilot; the fee is normally
based on the ship’s tonnage, draft, or length.
Platform (or flat)
A shipping container without sides, ends, or a roof. Normally 20 or 40 feet long, it is used for
awkwardly shaped cargo that cannot fit on or in any other type of container.
Reefer
Refrigerated container or vessel designed to transport refrigerated or frozen cargo.
Relay
To transfer containers from one ship to another.
Ro/ro
A shortening of the term “roll-on roll-off.” Ro/ro is a cargo handling method whereby vessels are
loaded via one or more ramps that are lowered on the quay.
Stevedore
Individual or firm that employs longshoremen (or dockers, dock workers, or port workers) to
load and unload vessels.
Terminal charge

Page | 12
A charge made for a service performed in a terminal area typically referring to handling
associated with receipt, delivery, or inspection of cargo via land-based operations.
Throughput charge
The charge for moving a container through a container yard off of or onto a ship.
Top off
To fill a ship that is already partly loaded with cargo. Typically occurs where there is a draught
restriction at the first load port—the ship loads a quantity of cargo corresponding to the
permissive draught, then fills up at the second port where there is no restriction.
Top stow cargo
Goods that are stowed on top of all others in a ship’s hold because of their relatively low density
and the probability that they would be damaged if overstowed.
Toplifter
Forklift truck capable of lifting a container by means of its spreader.
Towage
Charges for the services of tugs assisting a ship or other vessels in ports.
Tramp line
An ocean carrier company operating vessels on other than regular routes and schedules.
Transshipment
A distribution method whereby containers or cargo are transferred from one vessel to another to
reach their final destination, compared to a direct service from the load port of origin to the
discharge port of destination. This method is often used to gain better vessel utilization and
thereby economies of scale by consolidating cargo onto larger vessels while transiting in the
direction of main trade routes.
Transshipment port
A port where cargo is transferred from one carrier to another or from one vessel of a carrier to
another vessel of the same carrier without the cargo leaving the port.
Turnaround time
The time it takes between the arrival of a vessel and its departure from port; frequently used as a
measure of port efficiency.
Twenty-foot equivalent unit (TEU)
Container size standard of twenty feet. Two twenty-foot containers (TEUs) equal one FEU.
Container vessel capacity and port throughput capacity are frequently referred to in TEUs.

Page | 13
Unitization
The consolidation of a quantity of individual items into one large shipping unit for easier and
faster handling through methods such as palletizing, stripping, slinging and containerization.
Unloader
Port equipment employed to unload ships carrying dry bulk cargo. (Note: Small movable and
hoistable unloaders are sometimes referred to as “vacuvators.”)
Unmoor
To remove the ropes that attach a ship to the shore.
Unstuffing (or stripping)
Unloading of a container.
Vessel traffic management system
Vessel control and management system (VTMS) usually under the authority of the harbormaster,
comprising equipment (such as radars, tracking software, and radio communications), personnel
(traffic operators), and regulations. Most larger maritime ports have relatively advanced vessel
traffic management systems for maritime safety, protection of the environment, and coordination
of marine services.
Warehouse
Covered area for the reception, delivery, consolidation, distribution, and storage of cargo.
Wharfage
The charge that an owner of a facility (terminal or port) charges for the movement of cargo
through that facility.

Page | 14
CHAPTER 3
PROFILES

Page | 15
Industry profile
In an era of economic globalization, ports are evolving rapidly from being traditional land
/sea interfaces to providers of complete logistics networks. That is, ports have had to face
many challenges due to unpredictable environmental changes and trends in the shipping,
port and logistics industries. Most ports in the world have attention to these challenges
and emerging issues, such as:

• globalization of manufacturing and outsourcing.

• Introduction of the super mega size containership.

• global trends of logistics network restructuring and reposition


of regional and local distribution centre.
• Increase of productivity and efficiency in ports.
• Rapid growth in volume of world seaborne freight, especially

Page | 16
container etc..
To cope with these challenges and emerging issues, ports across
the world have been trying to develop their physical infrastructures, especially container
terminals and related facilities, and to expand their port hinterland through introducing
free trade zones with a hope of developing hub ports and international logistics centres.
The first container ship was the Ideal-X,
a converted T-2 tanker, owned by Malcom McLean, which carried 58 metal containers
between the port of Newark, New Jersey and the port of Houston, Texas, on its first
voyage, in April 1956.
The container terminal is the physical link between ocean and land
modes of transport and a major component of the containerization system. Maritime
container terminals tend to be part of a larger port which can be found situated around
major harbours. And also the container terminals usually provide storage facilities for
both loaded and empty containers. The industry is changing rapidly, with new structures
emerging in relations between shipping lines, terminal operators and cargo owners. In the
most general sense productivity measures output per unit of input. Container terminal
productivity deals with the efficient use of labour, equipment and land.Terminal
productivity measurement is a means of quantifying the efficiency of the use of these
three resources.
There are close to 600 container ports across the world with an estimated
combined handling capacity of 380 million TEU.The world busiest container ports are
Port of Singapore, Port of Hong Kong, Port of shanghai, Port of Shenzhen, Port of
Rotterdam, Port of Dubai etc.The largest ports, those that can handle in excess of 1
million TEU per annum,account for nearly two thirds of global capacity. By 2010
Shanghai container throughput is expected to have surpassed Hong Kong, currently the
world’s largest port, but by 2020 Shanghai is expected to be overtaken by Shenzhen to
become the world’s largest container port. Shanghai and Shenzhen are expected by 2020
to be moving 56.2 million and 57.9 million TEU respectively.
The container port and terminal business is changing rapidly. Against a
background of globalisation-driven rapid demand growth, the sector has been attracting

Page | 17
massive new inward investment - both from operating companies and external investors.
This means that the pressures on terminal operations and development strategies are
changing very rapidly. In addition, the general political environment within which
terminals are operated is becoming much more environmentally sensitive. All these
factors combine to place very great pressures on the sector.

Organization profile

History
The Port of Cochin was developed during the period 1920-1940 due to the
untiring efforts of Sir Robert Bristow. By 1930-31 the Port was formally opened for
vessels up to 30 feet draught. Cochin was given the status of a Major Port in 1936. The
Administration of the Port got vested in a Board of Trustees on 29th February 1964 under
the Major Port Trusts Act,1963.

Organizational structure
Cochin Port Trust is an Autonomous Body under Govt.of India and is managed
by Board of Trustees constituted by the Govt. of India.The Board is headed by the
Chairman who acts as the Chief Executive Officer. The Govt.of India may from time to
time nominate the Trustees in the Board representing various interests. Chairman is
assisted by the Dy. Chairman who in turn is assisted by Department Heads and officials
of the following departments functioning in the Port.
a) General Administration Department
b) Traffic Department
c) Accounts Department
d) Marine Department

Page | 18
e) Civil Engineering Department
f) Mechanical Engineering Department
g) Medical Department

Port Description
Cochin Port Trust is one of the twelve major Ports in India. Port of Cochin is
located on the south-west coast of India in the state of Kerala. This region generates a
major part of maritime traffic and is situated near the main shipping routes. The port is
situated in the wellington island, which is an artificial island and was created by using
dredged soil. The wellington island divides the backwaters into Ernakulam channel on
the east and Mattanchery channel on the west. The Cochin Port is strategically located on
the East -West trade route, only 11 nautical miles away from the direct sea route tom
Australia and the Far East from Europe. No other port enjoys this closeness to the
maritime highway.

Cochin is also one of the premier ports in India to introduce containerization in


cargo handling operations as far back as 1973 and it’s the first e-port in India. In recent
years container traffic through the port registered a quantum jump. The introduction of
house stuffing in 1992 and commissioning of the Rajiv Gandhi Container Terminal in
1995 greatly contributed to this significant growth.

FACILITIES AT A GLANCE

• Well equipped container terminal


• 16 berths including 3 Oil jetties
• Maximum draft of 12.5 metres
• Vast Estate covering 1940 acres including land at Puthuvypeen,
Vallarpadam & South end reclamation area.
• 1 Dry Dock

Page | 19
Storage Facility
57485 sq.m of covered area and
1,00,000 sq.m of open area
Container Freight Station
10,732 sq.m. of Covered accommodation
Container Stack Yard (IGTPL)
1,300 ground slots including reefer.
Reefer Points (IGTPL)
126 points of 440 Volts
Dry Dock
66m x 12.5m x 4m
Computerized operations
For yard Planning, stacking and billing of Containers
Central Documentation Centre
For providing Single window clearance for exports

PORT LAYOUT

Page | 20
The entrance to Port is through the Cochin Gut between the peninsular headland Vypeen
and Fort Cochin. The port limits extend up to the entire backwaters and the connecting
creeks and channels. From the Gut the channel divides into Mattancherry channel and
Ernakulam Channel, leading to west and east of Willingdon Island respectively and
berthing facilities for ships have been provided in the form of wharves, berths, jetties and
stream moorings alongside these channels.

Page | 21
Dubai Port World ltd.
DP World is one of the largest marine terminal operators in the world, with 49 terminals and 12
new developments across 31 countries. Its dedicated, experienced and professional team of
nearly 30,000 people serves customers in some of the most dynamic economies in the world.
DP World aims to enhance customers’ supply chain efficiency by effectively managing
container, bulk and other terminal cargo.
DP World was formed in September 2005 with the integration of the terminal operations of the
Dubai Ports Authority (DPA), which was focused on the UAE ports of Rashid and Jebel Ali, and
DPI (Dubai Ports International) which had been set up to export this success internationally.
When it was first established in 1999, DPI had initially applied its expertise to managing ports in
the Middle East, India and Europe. Its first project was at Jeddah Islamic Port (in 1999), where it
collaborated with its local partner on the management and operation of the South Container

Page | 22
Terminal (SCT). DPI then went on to develop successful operations at the ports of Djibouti
(2000), Vizag, India (2002) and Constanta, Romania (2003). In January 2005, DPI transformed
its network with the strategic acquisition of CSX World Terminals (CSX WT), the international
terminal business of CSX Corporation. This acquisition gave the company a strong presence in
Asia with major operations in Hong Kong and China as well as operations in Australia,
Germany, Dominican Republic and Venezuela.
In February 2005 DP World signed an agreement with the Cochin Port Trust (CoPT) to
construct, develop and operate an international container transhipment terminal at Vallarpadam,
Kochi, India. It is the largest single operator container terminal currently planned in India and the
first in the country to operate in a special economic zone. The new terminal will make Kochi a
key centre in the shipping world reducing India’s dependence on foreign ports to handle
transshipment.
They took another giant leap forward with the acquisition of P&O in March 2006, expanding our
portfolio of terminals and adding P&O Maritime Services to the group. The combined container
throughput of both companies for 2005 was more than 35 million TEU across terminals from the
Americas to Asia. This grew to nearly 42 million TEU in 2006. The acquisition also brought
with it an exciting pipeline of projects that will continue our future expansion, independent of
acquisitions, across key markets globally.
In 2009, DP World handled more than 43.4 million TEU (twenty-foot equivalent container units)
across its portfolio from the Americas to Asia. With a pipeline of expansion and development
projects in key growth markets, including India,China and the Middle East, capacity is expected
to rise to around 95 million TEU over the next ten years.

Page | 23
International Container Transhipment Terminal (ICTT)

India's transshipment gateway is under construction at Vallarpadam near Kochi by Dubai Ports
World, world's biggest port operator.

Page | 24
On the 16th February 2005, DP World announced that it has formally signed an agreement with
the Cochin Port Trust (CoPT) to construct, develop and operate an International Container
Transhipment Terminal (ICTT) – An India Gateway Terminal – at Vallarpadam.
The project was formally launched with the laying of the foundation stone by Mr. Manmohan
Singh, the Hon’ble Prime Minister of India. The ceremony was attended by Dr. Jacob Thomas,
Chairman, CoPT and Mr. Sultan Ahmed Bin Sulayem, Executive Chairman, DP World. The
proceedings were overseen by the Hon’ble Minister of Shipping, Government of India, Mr.T.R.

Page | 25
Baalu, the Hon’ble Chief Minister for Kerala, Mr.Oommen Chandy and His Excellency, the
Governor of Kerala, Mr. R.L. Bhatia.
‘Vallarpadam’ is the largest single operator container terminal currently planned in India and the
first in the country to operate in a special economic zone. The new terminal will make Cochin a
key centre in the shipping world reducing India’s dependence on foreign ports to handle
transhipment. Approval for the agreement was given by the Cabinet Committee of Economic
Affairs of the Government of India, Ministry of Finance and meanwhile, the DP World will
manage and subsequently transfer its operations at the ‘Rajiv Gandhi Container Terminal’
(RGCT) in Cochin Port to the new terminal upon its completion. The DP World has been granted
a 38-year concession for the exclusive operation and management of the site.
Construction of the Terminal is expected to be completed in four years and commercial
operations to be started within a year of completion. The first phase of the new Terminal will
have a capacity of 1 million TEUs which consists of 600 metres of quay, six Super Post Panamax
Quay Cranes and an on-dock railhead serviced by rail-mounted gantry cranes. Construction of a
new four lane bridge and highway access to the ’golden quadrilateral’ road network is already
underway. Vallarpadam will be expanded ahead of demand to eventually total 1.8 km of quay
and at least 16 Quay Cranes capable of handling the largest vessels afloat, with associated yard-
handling equipment and a capacity of 3 million TEUs.
The total cost of the project is estimated at US$500 million and will be funded by DP World
through non-recourse debt funding. The debt is provided by a consortium of banks led by the
Infrastructure Development Fund Company (IDFC), set up to provide growth capital for
infrastructure projects in India.
With the finalization of this agreement, the DP World has taken over the management and
operation of the existing container handling facility at the RGCT prior to the transfer of its
operations to the new terminal upon its completion. DP World will actively manage and invest in
the facility focusing on improving productivity, investing in quayside and yard-handling
equipment and implementing state-of-the-art IT systems. DP World has estimated that the total
initial investment required will be approximately US$20 million which includes the immediate
provision of four RTGs and two Mobile Harbor Cranes to the Terminal - to improve yard
handling, truck turnaround time and quayside operations.

Page | 26
Strategically located on the main east-west global shipping lines and offering draft of about 16
m, Cochin is destined to develop as the premier gateway to southern India, as also offering an
alternative to Sri Lanka and Singapore for containers being transhipped for the Indian market.

Port of Singapore

The Port of Singapore refers to the collective facilities and terminals that conduct maritime
trade handling functions in Singapore's harbour sand which handle Singapore's shipping.
Currently the world's busiest port in terms of total shipping tonnage, it also tranships a fifth of
the world's shipping containers as the world's busiest container port, half of the world's annual
supply of crude oil, and is the world's busiest transshipment port. It was also the busiest port in
terms of total cargo tonnage handled until 2005, when it was surpassed by the Port of Shanghai.
Thousands of ships drop anchor in the harbour, connecting the port to over 600 other ports in 123
countries and spread over six continents.

The Port of Singapore is not a mere economic boon, but an economic necessity due to the fact
that Singapore is lacking in land and natural resources. The Port is critical for importing natural
resources, and then later re-exporting them after they have been refined and shaped in some
manner, for example wafer fabrication or oil refining to generate revenue. The Straits of
Johor are currently impassable to any ship as the Johor-Singapore Causeway links Singapore to
Malaysia.

Page | 27
The Port of Singapore's PSA terminals include four container terminals, operated as one
seamless facility, located at Pasir Panjang, Keppel, Brani, and Tanjong Pagar. The newest
terminal at Pasir Panjang can accommodate the latest mega-container vessels carrying over 13
thousand TEUs. PSA Singapore Terminals is developing 23 container berths at the Port of
Singapore's Pasir Panjang terminal, and another 16 berths will be added by 2018, bringing total
container-handling capacity at the Port of Singapore for 50 million TEUs per year.

PSA Singapore Terminals also manages two multi-purpose terminals at Pasir Panjang at the
Sembawang Wharves. These Port of Singapore terminals offer many port-related services
including warehouses, open storage, and facilities for breakbulk and specialized cargoes. The
Port of Singapore's Asia Automobile Terminal (Singapore) makes PSA terminals a fast-growing
major automotive transshipment hub for the region.

Port Location: Singapore

Port Name: Port of Singapore

Port Authority: Maritime and Port Authority of Singapore (MPA)

Page | 28
Latitude: 1° 17' 34" N

Longitude: 103° 43' 31" E

Port Type: Deepwater Seaport

Port Size: Very Large

Port of Singapore Authority(PSA)


The Port of Singapore Authority (PSA) was formed on 1 April 1964 to take over the functions,
assets and liabilities of the Singapore Harbour Board. With the development of Jurong Industrial
Estate, the Jurong Port was opened in 1965. Further expansion followed in 1971 when the PSA
converted the British Naval Base Store Basin into the Sembawang Wharves. Singapore became
the first port in South-East Asia to accommodate a third-generation container vessel with the
opening of a container berth at Tanjong Pagar on 23 June 1972. Pasir Panjang Wharves was set
up in 1974.
At that time, the PSA operated five maritime gateways: Keppel Wharves, Jurong Port,
Sembawang Wharves, Tanjong Pagar Container Terminal and Pasir Panjang Wharves. There
were about 12 km of wharves and more than 1.5 million sq m of warehouses. Lying at the
crossroads of international ocean-going trade routes, the Port of Singapore receives an average of
140 thousand vessels per year carrying about 30 million containers, 500 million tons of cargo,
and a million cruise passengers. The Port of Singapore is proud of its advanced technology,
allowing the MPA to provide reliable, efficient, and secure services 24 hours a day.

Page | 29
Terminals
Tajong Pagar Terminal

Container births 8
Quay length(m) 2300
Area(ha) 85
Max depth at chart datum(m) 14.8
Quay cranes 29

Keppel Terminal

Page | 30
Container births 14
Quay length(m) 3200
Area(ha) 100
Max depth at chart datum(m) 15.5
Quay cranes 42

Brani Terminal

Container births 9
Quay length(m) 2600
Area(ha) 80
Max depth at chart datum(m) 15
Quay cranes 32

Pasir Panjang Terminal

Container births 23
Quay length(m) 7900

Page | 31
Area(ha) 335
Max depth at chart datum(m) 16
Quay cranes 87

Performance

TOTAL CONTAINER THROUGHPUT (in '000 TEUs)

2002 16,940.9
2003 18,410.5
2004 21,329.1
2005 23,192.2
2006 24,792.4
2007 27,935.5
2008 29,918.2
2009 25,866.6

2010
Jan 2,332.3
Feb 2183.2
Mar 2409.6
Apr 2320.8

Salalah port (Oman)


Page | 32
Port of Salalah is a world class transshipment hub in the West Central Asia Region. Situated
right at the major East-West shipping lanes, Salalah enjoys an attractive strategic location in the
heart of the Indian Ocean Rim and caters to some of the world’s largest ocean going vessels. The
Salalah Port Project is the largest privatization project in Oman and is hailed as a role model for
achieving the Sultanate's strategic direction of Diversification, Omanisation and Privatization.
The success of the port's development has been an engine for economic development in the
southern region of Oman, Dhofar and has created a significant number of job opportunities for
local nationals in addition to new business opportunities for local companies in the region.

The Port of Salalah is a common-user multi-purpose port, with facilities to handle bulk cargo,
containers, general and liquid cargoes and in addition offers value added services such as
bunkering, container repairs, a container freight station, warehousing and ship repairs. The
majority of the business comes from the container terminal, which handled about 2.64 million
TEU and more than 1,500 vessels in 2007.
Today the capacity of the container terminal is 4.5 million TEU. A tender for detailed design of
Terminal 2 which has just been launched which will add 1350 meters to the existing 2,205
meters linear quay.
Location details

Page | 33
Country Oman

Province/governorate Dhofar

Town or city (closest) Salalah

Port Name Salalah Port

Latitude (N/S Decimal Degrees) 16°56.50 N

Longitude (E/W Decimal Degrees) 054°05.4'.00 E

Container Terminal
Port of Salalah is one of the fastest growing terminals in the West Central Asia region situated
right at the major East-West shipping lanes. With the opening of the 5th deepwater berth in May
last year and the recent completion of berth 6, the annual throughput capacity has grown from
2.5 million TEU in 2006 to 4.5 million TEU in 2008.

With the increase in demand for port facilities in this region, the Port of Salalah has made
significant investment in providing new facilities to ensure it remains an industry leader. They
have, invested in eight more Super Post-Panamax gantry cranes to augment the 17 cranes that are
already operating. These machines, with their ability to reach containers stacked 24-across on
deck, can service the largest vessels in the world. This, the opening of the two new berths and

Page | 34
significant investment in new port handling equipment has brought the port’s capacity to about 6
million TEU annually by mid 2009.

The constant expansion and development of the Port of Salalah plays an important role in
meeting increasing customer requirements; at the same time, it also ensures increased efficiency
and faster vessel turnaround times. The Port’s growth strategy lays the foundation for success in
reaching its goal of becoming a main global transhipment hub. A minimum of three further
container berths have been approved, which will give us a total of nine berths, totaling 3,555
metres in length. Berths 7, 8 and 9 are known as “Terminal 2”. This project will add an
additional 1,350 metres of quay wall and another 3 million TEU to the Port’s annual capacity.
Berth 7 is expected to be operational during the first quarter of 2011, with Berths 8 and 9
scheduled for completion during the following year.
Port Limits
From the highest point of the high tide where the point intersect the coast at 054° 04 Min East
longitude and from that point in the direction of true South to the point intersecting the line 16 °
58 Min North latitude and from this point in the direction of true EAST to the point intersecting
the 54° 5.40 Min East longitude from that point in the direction of true South to the point
intersecting the line 16 ° 54 Min North latitude and from that point in the direction of true west
to the point intersecting the line 53° 58 Min East longitude and from this point in the direction of
true North to the point intersecting coastline and from this point following the coast back to the

Page | 35
starting point includes all wharves, quays, piers, landing places, decks, storage areas, road, and
buildings under the operational or administrative control of the Port authority.
Pilot Boarding Ground
Port Pilot will board the inbound vessel 3.4 NM East of the Breakwater “Lat. 16°56.50 N Long
054°05.4'.00 E”
Fairway & Approach Channel
Port of Salalah is entered from NE between East Breakwater and the Container Terminal.
Vessels approaching from the Fair way pass between a pair of light buoys (Port and Starboard)
and then between the head of East Breakwater and a light buoy 0.2nm NW.
Port Control
You can contact the Port of Salalah Port Control on:
• VHF: Ch 12, 16

• Tel: +968 2321 9052 / 2321 9500 ext 423/424

• Email: portcontrol@salalahport.com

• Fax: +968 2321 9253

Pilotage
Pilotage is compulsory and pilots may board from launch or tug and are available 24 hours.
Pilots can be provided at 30 minutes notice.
Vessels exempt from pilotage are:
• Vessels in the service of the Navy of the Sultanate of Oman

• Any vessel under 200 gross tones

• Country craft

• Tenders of any recognized buoyage, lighting or navigational aid service

Not withstanding the above items, the Harbor Master may insist on the use of a Pilot in the
interest of Port Safety, in which case the appropriate tariff charges will apply.
Pilot boards in position 16° 57'N 54°04'E, 3nm East of the Breakwater Light. or as directed by
Salalah Port Control.

Page | 36
Anchorage
Three Anchorage areas are designated for Vessels calling at the Port of Salalah:
• Area "A" for inbound vessels awaiting berthing. Area bounded by the following
coordinates:

• Lat. 16°56'5 N Long 054°02'0 E

• Lat. 16°56'5 N Long 054°04'0 E

• Lat. 16°55'5 N Long 054°04'0 E

• Lat. 16°55'5 N Long 054°02'0 E

• Area "B" for vessels requiring off shore services. Area bounded by the following
coordinates:

• Lat. 16°55'5 N Long 054°04'0 E

• Lat. 16°55'5 N Long 054°02'0 E

• Lat. 16°55'0 N Long 054°02'0 E

• Lat. 16°55'0 N Long 054°04'0 E

• Area "C" for ship to ship bunkering operations. Area bounded by the following
coordinates:

• Lat. 16°55'0 N Long 054°02'0 E

• Lat. 16°55'0 N Long 054°04'0 E

• Lat. 16°54'0 N Long 054°04'0 E

• Lat. 16°54'0 N Long 054°02'0 E

• Area "D" for inbound large vessels waiting to be berthed. Bounded by the following
coordinates

• Lat. 16°56'0 N Long 054°04'.00 E

• Lat. 16°56'0 N Long 054°05'.40 E

Page | 37
• Lat. 16°54'0 N Long 054°04'.00 E

• Lat. 16°54'0 N Long 054°05’.40 E

Charts
BA 2895, 2896 and Oman 250, 1200, 1201 Admiralty pilot NP 4.
Port Approach
Vessels approaching the Port of Salalah meet the Pilots one mile east of the Fair Way Buoy (16
Degree 56.96 N and 54 Degree 02.64 E) and pass between a pair of light buoys (Port &
Starboard) leading to the entrance between East Break water and the Container Terminal.
Tidal Range & Flow
Tidal range averages 1.0m to 2.0m however; during the monsoon season (June to August) waves
can be up to 4.0 at max.
Dock Water Density
Density: 1.025.
Charts
BA. 2895,2896 and Oman 250,1200,1201 Admiralty Pilot NP 64.

Berth No Length (m)MPD*


1, 2, 3, 4 307 15.5
5, 6 488 17.5
21, 22, 23173 9
24 200 6.8
25 115 4.3
26, 27, 28115 4.1
29 260 2.6
30, 31 300 15
Oil Jetty 130 10.0
Ramp Lct45 2.5

Weather
Prevailing winds: Monsoon wind, direction 230 deg, speed max
15-20kn during the period of June to August
November to March: Temperatures approx 24°C-34°C
March to May: Spring, temperatures approx 20° to high 30°
June to August: Summer, temperatures vary between 20° to 30° due to the
monsoon.

Page | 38
Tugs
Four tugs of 55 Ton Bollard pull are available.

Port Logistics

The Port of Salalah Container Terminal has 6 fully operational berths along 2,205 m of quay.
The Container Terminal is build and equipped to handle the world's largest container vessels
with its 16.5 - 18.5 m approach channel and is ready to welcome the next generation of vessels.

With opening of Berth 5 in May 2007 and inauguration of Berth 6 in May 2008, the Port of
Salalah has expanded the Container Terminal with 970 metres quay wall and increased the
capacity from 2.5 million TEU to 4.5 million TEU per annum, to meet customer demands and
prepare for the future. The expansions and planned growth of the Container Terminal does not
stop here and berth 7, 8 and 9 are already on the drawing board, as well as 4 additional Super
Post Panamax Cranes have been commissioned.
The Port of Salalah General Cargo Terminal has facilities to handle most other types of cargo
including general cargo, bulk oil, roll on/roll off cargo and also caters to cruise vessels. There are
facilities for over 980 refrigerated containers. The General Cargo Terminal has 12 berths ranging
in length from 115 meters to 600 meters with drafts up to16 meters and has a dedicated oil pier.
The General Cargo Terminal is also under expansion including 500 metres additional berth and
212,000 m2yard area.
The port operates 24 hours a day, seven days a week, divided in day and night shifts.

Container Terminal

The Container Terminal offers true one-stop-shopping with the full range of main and ancillary
services:
• Stevedoring
• Reefer Services
• Container M&R
• CFS, warehousing and real estate leasing
• Bunkering through BP Marine
• Cargo inspection through Henderson International
• Several ships chandlers

Page | 39
• Customs on-site
Port of Salalah has invested a great deal in superstructure equipment to provide an efficient,
effective, competitive and reliable service to its customers.
• 6 fully operational berths
• Total yard area of 765,000 m2
• 2,205 m quay wall
• 16 m harbor depth
• 16.5-18.5 m approach channel
• 500 m turning basin
• Vessel tracking system
• 17 Super Post Panamax Gantry Cranes
• 7 speed loaders
• 7 fork lifts
• 45 rubber tyre gantry cranes
• 123 tractors and 158 trailers
• 3 tugs
• 9 reach stackers
• 2 top loaders
• NAVIS yard and vessel planning system
• Radio data terminals
• VHF radios
• Multi cargo consolidation (Container Freight Station)
• Container repair facility
• Reefer wash facilities
• Emergency power plant 2.8 MW
• 2 fuel tanker.
• 1 water tanker

Container Freight Station

Page | 40
In order to meet customer requirements at a modern container terminal the Port of Salalah
established a CFS (Container Freight Station) in 2002. It plays a vital role in adding value to its
existing services offered at the port.
The Port of Salalah manages and operates a Container Freight Stations (CFS) within the port
boundaries providing groupage services of Less than Container Loads (LCL) for exporters as
well as de-consolidation services especially for importers requiring distribution.
CFS is split into outbound & inbound Cargo.
Out Bound
• Cargo receiving
• Cargo Storage
• Cargo consolidation/vanning
In Bound
• Cargo Devanning
• Cargo Storage
• Cargo transfer to customers
Value Added Services
• Palletization
• Cross-stuffing
• Heavy Cargo Handling
• Damaged cargo tranloading
• Inspection/ Surveying
• Damaged Pallet Repairing
• Marking & Labeling
• Sea-Air cargo handling
Port of Colombo , Srilanka
The largest and one of the busiest ports in Sri Lanka, the Colombo Harbour is located in this city.
Colombo was established primarily as a port city during the colonial era, with an artificial

Page | 41
harbour that has been expanded over the years. Located on the southeast side of the island, the
Colombo Port facilities include two terminals, Jaya Container Terminal (JCT) and Queen
Elizabeth Quay (QEQ).

The Port of Colombo lets out into the Gulf of Mannar and is considered Sri Lanka’s international
hub for containers. Container offload time is approximately 3-4 days and the heaviest traffic days
are Monday, Wednesday and Friday. Warehousing at the port is divided over 9 storage facilities
with a total area of 34.317 m2. Four terminals are currently operated in the Port of Colombo. The
main terminal, Jaya Container, currently operates four main container berths and two feeder
berths. There is approximately 1,292 m of quay wall, 350m of cross-berth quay wall and a
dredged depth of 12-15 m. Capacity for dry container stacking is 44,120 TEU and 1,548 TEU for
reefer container stacking. There are 45.5 hectares of container terminal area and 15,000 m2 of
freight station area. The Unity Container Terminal holds two container berths and one
multipurpose berth. It has a dredged depth 9 – 11m and 590m of quay wall. There are 1.53
hectares of container terminal area and an 8,000 TEU stacking capacity. The South Asia
Gateway Terminal operates berths with a length of 940m and a depth alongside of 15 meters.
The total area is 20 hectares, with 12 hectares of stack area. The Peliyagoda container yard
belong to the SLPA but it is located outside the port, a warehouse is located on the yard.

Location details

Page | 42
Country Sri Lanka

Province/governorate Colombo

Town or city (closest) Colombo

Port Name Colombo Port

Latitude (N/S Decimal Degrees) 5 55’N to 9 50’N

Longitude (E/W Decimal Degrees) 79 42’E to 81 52’E

HISTORY
The city of Colombo derives its name from the port of kolomtota (Colombo harbor), which dates
back to the Sinhalese kotte kingdom of the 14th century. Kolomtota was the port first used by
merchants from china and the far east, India and Persia, who came to trade in the island's famous
spices in 1505, however, 443 years of foreign occupation began in Srilanka, when the Portuguese
fleet sailed in to Colombo’s harbor after more than a century and a half, the Dutch followed and
occupied the country from 1656 to 1796. then came the British, ruling the region as a colony
until a few years after world war ii.

It was during the latter part British rule that the port of Colombo was upgraded and converted to
a sheltered harbor. After independence was granted in 1948 the port was expanded with the
construction of the queen Elizabeth quay together with the completion of 16 alongside berths,
transit sheds, and warehouses the 1980’s saw the port undergo rapid modernization with the
installation of cranes, gantries and other staples of a contemporary container terminal. this
progress was to continue in to the 90’s with deepening the access channel and improving
throughput to record levels. to this day, the port of Colombo is rated as one of the top 35 ports in
the world.

Terminals
Unity Container Terminal

• Two Container Berths


• 01 Multi Purpose Berth

Page | 43
• -9.0m to -11.0m Dredged Depth
• 590 Meters of Quay Wall
• 1.53 Hectares of Container Terminal Area
• 8000 TEU Stacking Capacity
• Inter Terminal Road Link with JCT and SAGT
• 03 Nos of quayside Container Cranes
• 08 Nos of RTG on Order
• 50 Units of Terminal Tractors

Page | 44
Jaya container terminal
• 4 Container Main Berths & 2 Feeder Berths
• 1,292m of Quay Wall + 350m of Feeder Berth Quay Wall. 12.0m - 15.0m Dredged
Depth
• 14 Nos. Quayside Container Cranes (Panamax & Super Post Panamax)
• 39 Nos. Rubber tired Container Transfer Cranes
• 4 Nos. Rail mounted Gantry Cranes to stack empty container 8high
• 45.5 Hectares of Container Terminal Area
• 48,056 TEU Dry Container Stacking Capacity
• 1,548 TEU Reefer Container Stacking Capacity
• 15,000 Sq.m of Container Freight Station Area
• Ship Planning System with Electronic Bay Plan Transfers
• Direct Link Computer Facilities to the Terminal Users (EDI)
• Real time Computer systems for Yard Planning and Yard Operations
• Convenient Access to Inland Container Depots and IPZ

Total Pier Frontage

Main Berth Length - 1292m


Alongside Depth - 12.00 - 15.00m
Feeder Berth Length - 350m
Capacity

Max. Capacity
No of slots Stacking Height
Tue

Dry Containers
JCT 1 (RTG) 1980 One over Three 7920
JCT 2 (RTG) 2184 One over Three 8736
JCT 3 (RTG) 2376 One over Five 14,256
JCT 4 (RTG) 1560 One over Four 9,360
Empty Stacks 814 One over Four 6512
(RTG Planned) 180 One over Eight 1272

Top Lifters 318 One over Four 720

Total Dry Container


9232 48,056
Capacity
Page | 45
South Asia Gateway Terminals

Berths

Length : 940m
Depth Alongside

SAGT-01 15m
SAGT-02 15m
SAGT-03 15m

Area

Total Area 20 ha

Stack Area 12 ha

Capacity

Stack Slots Stacking Height Capacity

Reefer 540 Three High 1620

Mobile Equipment
Reach Stackers

Fantuzzi 45t 5ea

Forklift Handlers

Full container Fantuzzi 38t 7ea

Empty container Fantuzzi 8t 2ea

Terminal Tractors

Kalma Ottawa Commando 50 31.8t 30ea

Terminal Trailers

Dutch Lanka - 40' Trailer 55t 30ea

Gantry Crane
Outreach:
51m from C/L quayside rail
Rubber Tyred Gantry Cranes 28ea
Lifting

Page | 46
Post Panamax 03ea

Outreach:

51m from C/L quayside rail


Super Post Panamax 06ea Lifting Height:
35.5m above quay

Expansions

The Colombo South Harbour Development Project, presently under construction, would be
positioned as the best transshipment cargo handling hub in the South Asia region. he Colombo
South Harbour will mainly focus on handling transshipment cargo in the subcontinent. At
present, the Port of Colombo alone handles 15 per cent of transshipment cargo in the
subcontinent.
The Colombo South Harbour will be located west of the present south-west breakwater in an
area of about 600 hectares.

Page | 47
The harbour will have four terminals of over 1,200m in length each to accommodate three berths
alongside depths of 18m and provision to deepen to 23m to accommodate deeper draft vessels of
the future.
The channel width of the harbour is to be 560m and depth of 20m, with harbour basin depth of
18m and a 600m turning circle. The harbour will boast the latest generation of yard planning and
container handling equipment and techniques.
The project will raise the capacity of the Colombo Port from the existing around four million
TEUs annually to about 12 million. The first terminal is likely to become operational in 2010 and
will have a nominal capacity of 2.4 million TEUs.
The project is part of the Colombo Port Expansion Project, the largest project undertaken by the
Sri Lanka Ports Authority with a $1200 million investment.
It is a Government built-and-owed harbour facility and will have a private-public partnership in
the provision of terminal services.

Competitive factors
Capacity and discharge rates

Capacity Bulk(MT/month) Container(MT/month General


) Cargo(MT/month)
Total handling cap 26,50000 2,50000 3000000
of the port
Monthly activity 470.000 200.000 2.220.525
of the port
Current monthly 150
activity by wfp.
Potential monthly 1000
activity by wfp.
Monthly use if
augmented.

Port Container Facilities

Container facilities 20’ 40’

Container facilities Yes Yes


Daily off-take capacity(nb of 7000(20’+40’) 7000(20’+40’)
containers)
Page | 48
Container Freight Stations Yes Yes
Number of cfs 4 4
Capacity of cfs 60 60

Chapter 4

ECONOMIC IMPACT OF VALLARPADAM


CONTAINER TERMINAL

Page | 49
Economic impact of vallarpadam

Maritime trade has been an important source of revenue for the Indian economy over the years.
A major portion of the import and exports to and from India is facilitated through shipping. At
present India consists of 12 major ports with the Mumbai port being the biggest of the lot. Most
of the capacity across these ports facilitate the handling of bulk cargo (liquid bulk , dry bulk ,
break bulk). But recent years has seen a quantum leap in containerized cargo with huge container
ships coming into the picture. The Indian ports handle very less of containerized cargo with not
enough facilities to attract the huge container ships of present. Hence the huge potential of
containerized cargo was not being made use of. In view of changing this scenario around and
bringing India into prominence in global maritime trade map the Indian government entered into
an agreement with global terminal operators Dubai port world to construct, develop and operate
an International Container Transshipment Terminal (ICTT) – An India Gateway Terminal – at
Vallarpadam.
The new vallarpadam container transshipment terminal that will commence shortly will usher in
a new era in maritime trade in India. It’s been developed to handle the largest of container ships
which would turn the Cochin port into the hub port of India and is envisaged to be the premier
hub port in the region challenging the likes of Colombo, Salalah and Singapore ports. It would

Page | 50
undoubtedly result in a lot economic benefits to India and Kerala in particular which shall be
discussed below :-
The depth at the Vallarpadam terminal, together with the latest technology in equipment,
will allow mega container ships such as Emma Maersk, which has a capacity of at least
12,500 TEUs, to call for loading and unloading cargo.

The huge cost involved in deepening and widening the existing shipping channel to
accommodate large container vessels requiring a draught of 13-14 m and the recurring
expenditure to maintain the access channel over about 12 km from the sea.

Larger vessels bring about economies of scale and lower cost of operations for the
shipping lines, which then translates into lower freight rates for exporters, importers.

On commencement of the container transshipment terminal the industrial sector is said to


make gains in excess of 1000crs in the import-export sector.
Besides resulting in financial gains there will be considerable saving of time which will
give a new impetus to the industrial growth in the region. Exports can be delivered much
faster and the same goes for imports which will reach the Indian markets faster.

Since large container ships were not entertained in Indian ports the production cost in the
industrial sector is much higher compared to many of the other Asian countries. This
results in products being comparatively more expensive in the global market. With the
opening of the ICTT at vallarpadam these problems will be solved and Indian products
will be able to sell at competitive prices globally.

70% of the containerized cargo handled at Colombo port is from Indian states at present.
Out of this 60% belongs to the southern states of Karnataka, Tamilnadu etc. With the
starting of the ICTT these states will be able to save up to Rs. 6,000-12,000 per container.

Page | 51
Investments to the tune of a whopping Rs. 21,000 crores is expected to come in at
Vallarpadam SEZ and adjoining areas.

Louis Cruises India, a subsidiary of the 12-ship Louis Cruises fleet, had launched
operations in India using Kochi in Kerala as its homeport. Louis Cruises India will
operate three-day and one-day cruises to the Maldives and Colombo from December to
May 2010 on board the “Aquamarine”, a luxury cruise ship. Nearly 60,000 travelers
could be expected to embark on their voyage from Kochi. This would bring real
economic benefit in addition to generating new jobs for the local community.

It would enhance tourism potential, promotion of hospitality industry and other allied
industries besides creating more job opportunities.

the potential to develop that cargo base appears bright in view of the likely establishment
of a port-based Special Economic Zone, an international bunkering terminal, ship repair
facilities, an international cruise terminal, an SBM terminal for the oil refinery, an LNG
gasification terminal, rail and road connectivity to be funded by the Centre.

Page | 52
Chapter 5

COMPARISON

Page | 53
Determinants of port competitiveness

In order to study the effects of the determinants of port competitiveness, we should first justify
the indicators of port competitiveness. Since the environment in which ports operate has changed
dramatically,ports are affected by various new forces driving global competition, including the
far reaching unitization of general cargo, the rise of mega-carriers, the market entry of logistics
integrators, the creation of network linkages among port operators, the development of inland
transport networks,and so on.
In this context, eight key determinants of port competitiveness are proposed based on the
existing literature. These determinants include
1. port (terminal) operation efficiency level,
2. port cargo handling charges,
3. reliability,
4. port selection preferences of carriers and shippers,
5. the depth of the navigation channel,
6. adaptability to the changing market environment,
7. landside accessibility,
8. product differentiation.
1) Port (terminal) operation efficiency level
Since ships time at ports is an expensive activity, the speed of container handling and consequent
vessel turnaround time is a crucial factor in terms of competitiveness for port authorities and port
operators (Peters, 2001). Thus, substantial productivity improvements are generally required to
enable ports to meet the stringent service requirements of their customers and to obtain

Page | 54
competitive advantages. Productivity is a measure of the efficiency of port or terminal
operations, and accounts for the amount of resources usually required to perform a given task in
a given time. Therefore, the level of efficiency can represent how quickly containers are handled
and how quickly vessels are turned around at ports. The higher the efficiency level of a port or
terminal operation, the more port users are likely to choose it as their port of call, which, in turn,
will make the port gain more market shares.
2) Port cargo handling charges
The price of goods or services is always an important factor that consumers will consider when
selecting products with similar characteristics. This rationale will also happen, or even more
likely, to the services provided by port authorities or port operators since carriers or shippers
think that port charges constitute a significant part of their total transportation costs. In addition,
carriers are also confronted with severely competitive environment in shipping market and must
pursue the ways to reduce the total shipping costs to gain competitive advantages. Nowadays,
port charges become a major source for shipping lines to cut down total operation costs.
Therefore, they usually prefer ports that can offer relative lower service charges,4 which means
that a port with a lower charge is more competitive than its rivals, holding other factors constant.
Since the cargo handling services are most important for port users in terms of total charges,
these charges significantly affect a port’s competitive position.
3) Reliability
That price is an important factor for producers to attain more market shares does not mean that
price can decide all things. Reliability of port operations also influences a port_s performance
(Tongzon, 1995), which in turn will affect the choices of shipping lines and shippers. Reliability
means a steady and predictable performance adapted to shipping lines schedules. If a port
authority or port operator always makes delays during operation process due to strikes,
equipment breakdown, weather, etc, shipping companies and shippers will suffer huge losses due
to these kinds of unreliability. Definitely, carriers and shippers will bypass this kind of ports
even if they provide the most attractive price among their competitors.
4) Port selection preferences of carriers and shippers
Globalization of industry is fast breaking down the traditional practice whereby shipping
companies favored certain ports. Increasingly, carriers and shippers are showing less loyalty to
specific ports. Ports face the constant risk of losing important clients, not because of deficiencies
in port infrastructure or terminal operations, but because the client has rearranged its service

Page | 55
networks or has engaged in new partnerships with other carriers. Thus, this variable is not fully
correlated with port specific variables, such as efficiency and reliability, so it should be included
as an independent port competitiveness indicator.
5) The depth of the navigation channel
To accommodate trade growth and to offer economies of scale in a highly competitive market,
many shipping companies intend to increase the size of their container ships from Panamax5 to
Post-Panamax, or even to the Super Post-Panamax. Increasingly large tonnage, especially of
vessels deployed in the container shipping market, will have significant effects on port
competition. These larger size container ships are always used among loading centers or hub
ports, the kind of port that most ports want to be, to enhance the amount of total throughput. In
many cases, however, insufficient water depths in access channel and port basins prevent some
ports from being a transshipment center.
6) Adaptability to the changing market environment
The market environment in which ports operate has changed significantly, and this continuous
process of change raises the question about the role of port authorities. A successful port must
constantly be prepared to adopt new roles in order to cope with the changing market
environment. For instance, in order to improve terminal operation performance and to integrate
door-to-door transport, many shipping lines want to expand their scope to include terminal
operation. If port authorities cannot realize the importance of this trend, they will lose certain
competitive advantages. That Port of Singapore Authority (PSA) has recently lost its two most
important clients is a convincing example. Thus, seaports that will succeed in the 21 st century
will be those that have a good understanding of customer needs.
7) Landside accessibility
Originally, ships loaded and discharged their cargoes in towns or cities where producers and
consumers are located. Expansion of land transport systems has altered things somewhat. The
days when ships were forced to call at city terminals blocked in on the landside by congested city
street are long gone. New remote coastal terminals with good landside connections, and ports
strategically located close to the main global trade lanes, increasingly offer carriers and shippers
a more appropriate option. Efficiency of inland transport to serve an increasing and most often
disputed hinterland has become a critical factor of ports potential future as well as of their overall
trade growth prospects. Since ports have become a prominent node in integrated logistics chains,

Page | 56
quick and safe access to port facilities from an inland transport system becomes a basic
requirement for port users to evaluate their port selection options.
8) Product (service) differentiation
A differentiation strategy aims at providing specific port services in market niches distinct from
those provided by other ports, offering greater value to the port users. This is so-called
economies of scope. If a port authority or port operator has some specific competencies (e.g.,
advanced information system and high service quality) that are inimitable and durable, it is easier
to achieve competitive advantages than his competitors. Studies have shown the need for product
(service) differentiation in an environment in which total number of containers is steadily
increasing and terminal expansion becoming increasingly difficult.

Page | 57
Tariff

The most important factor determining the competitiveness of a port besides facilities is the Port
Tariff. Port charges are generally divided into three broad categories, general tariffs, facility
tariffs and service tariffs, each of which are subdivided into a series of individual charges.
a) Conservancy and port dues
b) Wharfage
c) Berth hire (dock or berth due)
d) Transit storage
e) Pilotage
f) Towage
g) Mooring/unmooring (berthing/unberthing)
h) Stevedorage
i) Warehousing
j) Other tariffs

Page | 58
Singapore
Four kinds of port pricing approaches are basically applied in Singapore. PSA Corporation
adopts a market-based approach in that shipping companies are offered special offers according
to the long-term contracts. The port tariff structure of Singapore Port is nearly identified to Port
Tariff Structure Standards.
Navigation group
Tug and pilotage services are provided by the private sector and their charges are not included in
the port tariff.
Berth group
Berth hire is charged in the title of dockage on the basis of length overall of vessel-hours.
Mooring/unmooring is levied as berthing/unberthing services per berthing or unberthing.
Lashing/unlashing charge is levied per container (S$3).

Page | 59
Cargo operations group
Stevedorage consists of the basic rate, rehandling charge, lift on/off charge etc.
Storage charge is subdivided as follows: full/empty/trans-shipment and period.
For the trans-shipment cargoes, the Port of Singapore Authority (PSA) Corporation is
independently responsible for pricing. Port dues have been discounted at a 20 per cent rate since

Country Port Port Local THC 20' THC 40' THC 20' THC 40'
Name Code Currency Dry Dry Reefer Reefer

SINGAPOR Singapor SGSIN SGD 190 SGD 280 SGD 250 SGD 360 SGD
E e
,Singapor
e
1996.

Port of Salalah
Marine Charges
The Consolidated Marine Charge shown below is applicable for all vessels calling at a berth on
the container terminal and includes Pilotage, Tugs, Berthing and Unberthing Charges, Port Dues
and daily Sanitary Charge. Rate includes up to 24 hrs free waiting at the anchorage when
available in case vessel arrives ahead of the berth availability.

(All Charges in US$)


Charges for Containers
Up to 20’ Over 20’

Loaded Containers 75 115

Empty Containers 30 40

Terms & Conditions

Page | 60
• No volume incentive applicable on import / export container rates
• Additional charge of US$ 10 per container for hazardous containers including empty container
with cargo residue, and additional charge of US$ 50 per container for IMO classes 1, 5.2, 6.1,
6.2, 7 and other hazardous cargoes requiring special handling
• Direct delivery is not normally allowed and even if it is, no discount on these rates is applicable
• Non-cellular vessels are not normally handled at the terminal; in case Port agrees to handle
25% additional charge is applicable
• 10% additional charge for Public Holiday working
• Rates include lashing and unlashing charges
• Minimum billing of US$5,000 per vessel call for total loading/unloading of Import/Export and
Transhipment containers
Loading / Discharging of Transhipment Containers
Up to 20’ Over 20’
Loaded Containers 140 200
Empty Containers 100 140
Volume Discount rates are offered on Transhipment Container rates based on total number of
moves within a 12 month period as follows:
More than 10,000 moves Up to 20’ Over 20’
Loaded Containers 120 170
Empty Containers 90 130
More than 25,000 moves
Loaded Containers 100 130
Empty Containers 80 115
More than 50,000 moves
Loaded Containers 90 120
Empty Containers 75 105

Charges for Refrigerated Containers


Electric Supply / Monitoring of Refrigerated Containers per day 30 per container
Shifting Charges
Within Container Terminal 60 per container
Within Port Area 70 per container

Page | 61
Truck Loading / Unloading
For each loading or unloading 20 per container
Weighing of Containers
Use of Weighbridge 15 per weighment
Charges at CFS (Container Freight Station)
Composite Rate CY to CFS or V V
Up to 20’ Over 20’
160 220

Colombo port
The port tariff structure of Colombo port is subdivided in detail, especially in stevedorage related
charges.
Navigation group
For port dues, entering dues and over hour dues and light dues are charged separately.
Pilotage consists of pilotage payable on each arrival and professional pilot fees on the basis of
30,000 DWT.
Anchorage is charged from the fifth day of using anchorage for port entry.
Berth Group
Berth hire is charged per 100 gross tonnage as dockage. A rental charge for occupying a berth at
a wharf is levied after one hour from completion of discharging/unloading.
Cargo operations group
Harbour tonnage dues are levied on the ship in addition to stevedorage for the laden containers
discharged/loaded.
Movement of container is charged for the movement of containers from ship to marshalling yard.
Lifting-on/lifting-off is charged as mounting & de-mounting containers.
Hiring services consists of hire of forklift truck & cranes and other equipment.
Stevedorage-related charges are subdivided to a very detailed level. It would be possible to assist
users by simplifying them.

Page | 62
STEVEDORING US$ PER 20'

a) Transhipment
1. Discharging / Loading (One way) 37
2. Shut out 25
3. Storage (21 days free of rent and if not shipped
5.20
accrue from first day)

b) Domestic Cargo Operations


1. Discharging / Loading 140
2. Harbour Tonnage Dues 8
3. Mounting / Demounting 25
4. Stuffing & De-stuffing 22
5. Shut Out 25
6. Export Laden (7 clear days free of rent will accrue from
5.20
the 1st day of receipt)

c) Other Services
1. Sorting of Container 25
2. Change of Status 25

d) MCC within port

1. Stevedoring 37
2. Stuffing & De-stuffing 47.35

e) MCC Outside port


1. 100% T/S 37
2. Local + T/S (inclusive of stuffing charges, but local CBM 148

Page | 63
should limit to 8)

Cochin Port
The tariff rates at the Rajiv Gandhi container terminal are as follows:
India Gateway Terminal Tariff
Normal MT Container Charges
Particular Foreign going Coastal (INR)
Equipment Type 20' 40' 45' 20' 40' 45'
Handling of Quay Crane (in
USD for foreign going) 27.26 40.89 54.52 712.8 1069.2 1425.6

Imp & Exp Stevedoring (in


USD for foreign going) 2.81 2.81 2.81 75 75 75

Transportation from QC to
yard & Vice versa 237.6 356.4 475.2 142.56 213.84 285.12

Handling at Container Yard


including lift on/off,
delivery/receipt to and from
customers 178.2 267.3 356.4 106.92 160.38 213.84

Container wharfage 124.74 187.11 249.48 74.84 112.27 149.69

Normal FCL Container Charges

Page | 64
Particular Foreign going Coastal (INR)
Equipment Type 20' 40' 45' 20' 40' 45'
Handling of Quay Crane (in
USD for foreign going) 27.26 40.89 54.52 712.8 1069.2 1425.6
Imp & Exp Stevedoring (in
USD for foreign going) 2.81 2.81 2.81 75 75 75

Transportation from QC to
yard & Vice versa 267.3 400.95 534.6 160.38 240.57 320.76

Handling at Container Yard


including lift on/off,
delivery/receipt to and from 1140.4
customers 570.24 855.36 8 342.14 513.22 684.29

Container wharfage 594 891 1188 356.4 534.6 712.8

Additional Charges for Reefer Container


Particular Foreign going Coastal (INR)
Equipment Type 20' 40' 45' 20' 40' 45'
Per container per 4 hrs or
part thereof (in USD for
foreign going) 3.18 4.76 6.35 138.4 207.58 276.8

The present charges at vallarpadam container terminal are 30-60 % higher compared to charges
at the Rajiv Gandhi container terminal.

Page | 65
Facilities

Port of Singapore
The Port of Singapore's PSA terminals include four container terminals, operated as one
seamless facility, located at Pasir Panjang, Keppel, Brani, and Tanjong Pagar. The newest
terminal at Pasir Panjang can accommodate the latest mega-container vessels carrying over 13
thousand TEUs. PSA Singapore Terminals is developing 23 container berths at the Port of

Container berths 54
Quay length(m) 16000
Area(ha) 600
Max depth at chart datum(m) 16
Cranes 190
Designed capacity(‘000 TEUs) 35000
Singapore's Pasir Panjang terminal, and another 16 berths will be added by 2018, bringing total
container-handling capacity at the Port of Singapore for 50 million TEUs per year.

Port of Colombo
Four terminals are currently operated in the Port of Colombo. The main terminal, Jaya Container,
currently operates four main container berths and two feeder berths. There is approximately
1,292 m of quay wall, 350m of cross-berth quay wall and a dredged depth of 12-15 m. Capacity

Page | 66
for dry container stacking is 44,120 TEU and 1,548 TEU for reefer container stacking. There are
45.5 hectares of container terminal area and 15,000 m2 of freight station area. The Unity
Container Terminal holds two container berths and one multipurpose berth. It has a dredged
depth 9 – 11m and 590m of quay wall. There are 1.53 hectares of container terminal area and an
8,000 TEU stacking capacity. The South Asia Gateway Terminal operates berths with a length of
940m and a depth alongside of 15 meters. The total area is 20 hectares, with 12 hectares of stack
area. The Peliyagoda container yard belong to the SLPA but it is located outside the port, a
warehouse is located on the yard.
Container berths 11
Quay length(m) 3172
Area(ha) 60
Max depth at chart datum(m) 15
 14 Quay Cranes

 12 Super-Post Panamax Cranes


Cranes
 01 Twin_lift Super-Post Panamax
Crane

Designed capacity(‘000 TEUs) Approx. 12000

Salalah port
The majority of the business comes from the container terminal, which handled about 2.64
million TEU and more than 1,500 vessels in 2007.
Today the capacity of the container terminal is 4.5 million TEU. A tender for detailed design of
Terminal 2 which has just been launched which will add 1350 meters to the existing 2,205
meters linear quay.

Page | 67
Container berths 6
Quay length(m) 2205
Area(ha) 76.5
Max depth at chart datum(m) 16
• 17 Super Post Panamax Gantry Cranes
Cranes • 45 rubber tyre gantry cranes

Designed capacity(‘000 TEUs) 4500


Power supply 2.8 MW

Cochin Port

Container berths NA
Quay length(m) 1800
Area(ha) 110
Max depth at chart datum(m) 15.95
Cranes 27
Designed capacity(‘000 TEUs) Approx. 3000

Vallarpadam Terminal

Page | 68
Throughput

Singapore Port

2002 16,940.9
2003 18,410.5
2004 21,329.1
2005 23,192.2
2006 24,792.4
2007 27,935.5
2008 29,918.2
2009 25,866.6

2010

Jan 2,332.3
Feb 2183.2
Mar 2409.6
Apr 2320.8

Page | 69
Salalah Port

Containers

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Containers(000’ 2323 2488 2949 3183 3521 3928


Tonnes)

(TEUs) 185175 203112 226808 253715 260784 289817

Total 2323 2488 2949 3183 3521 3928

GRAND TOTAL 14103 13888 15257 15755 15494 17429

Cochin Port

Page | 70
Container Traffic Projection at Vallarpadam
YEARS (Million TEU's)
2010-11 0.583
2011-12 0.834
2012-13 0.931
2013-14 1.032
2014-15 1.148
2015-16 1.277
2016-17 1.417

Location

Page | 71
Among the various factors that determine the competitiveness of a major port none could be
more important than the strategic location advantage the port has to offer to the shipping lines.
Shipping lines today choose their port of call mainly based on a port’s distance to the industrial
agglomeration region, distance to the main lines and strategic location in the global network.
Shippers are always trying to optimize their productivity by means of cutting costs and hence
adopting a route of travel that best suits their target markets is of high importance and so the
location of the port comes into picture.

Singapore port

Salalah port

Page | 72
Located in the far south of Oman near the Yemeni border, the port is just 150 miles north of the
main Far East/Europe shipping lanes. This base on the Indian Ocean enables vessels trading to
and from the Gulf to bypass the Straits of Hormuz, avoiding potential zones of conflict and
shaving up to three and a half days off sailing times.
Colombo Port

Page | 73
Strategically located at the center of the Indian ocean just close to the main sea route from far
east and Australia to Europe and America, Colombo is a major port of call for more than 30 main
lines including almost all the top container carriers and more than15 feeder carriers.

Cochin port

Cochin, an all weather natural Harbour is located strategically close to the busiest international
sea routes:
(1) Gulf to Singapore and Far East (Distance from Cochin Port -11 Nautical Miles)

(2) Suez to Singapore / Far East (Distance from Cochin Port -74 Nautical Miles)

Amongst all major Indian ports, Cochin is the closest to the International East West Shipping
routes. This geo-strategic location of Cochin gives it a distinct advantage.

Security

Page | 74
In the wake of the 9/11 incident in USA security has become a prime concern for ports and
shippers around the world. Ports around the world are equipping themselves with all the latest
security measures to counter terrorism and other threats. Hence the level of security provided in
ports is a also a factor determining competitiveness.
What is the ISPS Code?
The International Ship and Port Facility Security Code (ISPS Code) is a comprehensive set of
measures to enhance the security of ships and port facilities, developed in response to the
perceived threats to ships and port facilities in the wake of the 9/11 attacks in the United States.
The ISPS Code and other maritime security measures were developed by IMO's Maritime Safety
Committee (MSC) and its Maritime Security Working Group before being adopted by a
Conference n Maritime Security in December 2002.
The purpose of the Code is to provide a standardised, consistent framework for evaluating risk,
enabling Governments to offset changes in threat with changes in vulnerability for ships and port
facilities through determination of appropriate security levels and corresponding security
measures.

Singapore Port
• One of the first countries in the world to comply with ISPS Code deadline of 1 Jul 2004.

• 1400 Singapore–registered ships & 126 port facilities are in compliance.

• ISPS Code focused on commercial facilities and larger vessels

To safeguard our ships and port facilities and to enhance maritime security, MPA developed
the following:
• Guidance for establishing security measures when calling non-ISPS compliant
ports

• Ship Self-Security Assessment Checklist

• Licensing Regime for Regional Ferry Operators

• Harbour Craft Security Code/Pleasure Craft Security Code

Page | 75
• Vessels entering or leaving the port may be boarded by ASSeTs(Accompany Sea
Security Teams)

Colombo port
• Availability of crucial global compliances such as the International Ship and Port
Facility Security Code (ISPS Code) and Container Security Initiative (CSI).
• Port Of Colombo (All Cargo Handling Terminals, Ship Repair And Ancillary Service
Facilities Within The Limits Of Port Of Colombo.

• There is an international mandatory dead line until 2012, for all the ports in the world to
get CSI compliance and Sri Lanka has already complied five years ahead.
• Colombo Port had spent US$ 50 million in getting ISPS compliancy and CSI
compliancy for container scanning.
• There are four container X-Ray machines in place at the Colombo Port. It can now X-Ray
entire containers and can detect radiation emanating from those substances that go to
make nuclear bombs. An entire container could be examined in two minutes.
• The Colombo Port is the first in Asia to install the Spectroscopic Portal Monitor (SPM)
under the US Mega Port Surveillance System. This ultra modern portal monitor was
installed under the Megaports initiative in the Port of Colombo by the Department of
Energy of the USA.

Salalah port

• Access to the port is restricted to port users and bona fide business community personnel.
To gain access to the port, personnel must be in possession of a gate pass. This can
be annual or a gate pass issued temporarily if the required documentation is provided.
• The Port of Salalah has security personnel and members of the Royal Oman Police to
man the gates. All personnel and vehicles are checked on entry and exit and all goods
must be manifested before entry or a document provided to remove property or
equipment.
• Access control

Page | 76
• Access permits
• 24/7 roving and static patrol
• Vessel and facility inspections
• ISPS compliant
• Liaise with ROP and other emergency services
• Vehicle checks
• Random checks

• The Port of Salalah is a Container Security Initiative (CSI) port to target and pre-screen
maritime cargo containers for terrorists and terrorist weapons destined for U.S. ports. he
Port of Salalah utilizes large-scale and sophisticated radiological detection equipment to
identify nuclear material.

Cochin port

• The port maintains high security arrangements and its security profile is ISPS compliant.
As per the requirements of the isps code all the provision in the code document were
implememnted. Security was tightened and all the port trust employees were provided
with tamper proof passes. Newer equipments like night patrol boat , night vision
binoculars , bomb proof blankets etc. were inducted to give the CISF an edge in
preventing intrusion into port property and also guarding against pilferage. The port
control was equipped with AIS (automatic identification system) which allowed it to
monitor all foreign going vessels entering or leaving the port.

Page | 77
Chapter 6

COMPARATIVE ANALYSIS AND SUGGESTIONS

Comparative Analysis
TARIFF

Page | 78
Port tariff is a major determinant of port competitiveness which is analysed in respect of the
ports under discussion. General port tariff structure comprises of lot of components which cannot
be covered here due to lack of information and complexity involved. Hence terminal handling
charges have been selected as the component for comparison.
It has been observed that of the 4 ports under study Colombo port has the lowest container
handling charges at approx. values in the ranges of 100 – 120 $ for 20’ and 40’ containers.
Singapore port imposes the highest charges at range of 160-240 $ for 20’ and 40’ containers.
The vallarpadam container terminal that is set to commence shortly has at present comparatively
higher charges compared to Colombo port. However, the cochin port management has decided to
bring down the charges so as to make it competitive with Colombo and other ports.this data is
not available as of present. Hence the Colombo port has a major advantage over the others in
this segment at present.

FACILITIES

Of the 4 ports the port of Singapore undoubtedly comes out on top in this segment with its vast
port infrastructure. Possessing 4 container terminals summing up to in excess of 16000m quay
length , 54 berths, 16m draft it has basically everything a shipper can ask for. The port is well
equipped to handle the largest of container vessels and with capacities of 35 million TEU’s
hence it is no surprise that the port of Singapore is a major port of call for most shippers.
The other 3 ports Colombo , Salalah and the cochin port with the commencement of vallarpadam
terminal will contesting for the best of deals in transhipement and import and export in the region
since all these three posses capacities and other facilities similar in size and number. At present
the capacity that can be handled at the Colombo port is significantly higher at 12million TEU
than the other two giving it a edge. On the technology front too these three are possessing similar
features.

LOCATION
Location is a major factor of strategic advantage for hub ports that thrive on transshipment. With
its strategic location, Singapore has an unrivalled connectivity. There are daily sailings from the
Singapore port to every major port in the world. In this respect it has to be said that all the ports
are suitably located close to the international sea route and do not affect the business of each

Page | 79
other significantly as of now except in the case of Cochin and Colombo ports. It can be seen that
these two ports are well located with the potential to receive a lot more deals in comparison with
Singapore though the same cannot be said in the other fronts. The two ports are located very
close to each other and sharing a similar position in the international sea route. With the arrival
of the vallarpadam container terminal a large chunk of the shipping of goods between the Indian
states via the Colombo port is set to shift to the the Indian container terminal that will reduce the
transport cost of shippers in this respect. At present 70% of the transshipment that takes place at
Colombo is from India and the scenario is all set to change. Otherwise it’s a tough battle on the
cards between these two attract the best of deals in transshipment.

SECURITY
Security is a major concern of any sector in today’s world and ports are no different. Hence they
are taking all measures possible to counter threats in the form of terrorism , pilferage etc. A study
of the security level at the four ports revealed that all the ports are in compliance with the ISPS
code which is a set of regulatory measures for maritime security. The Colombo port has gone for
additional security gadgets in the form of x- ray machines and Spectroscopic Portal Monitor that
enhances security and Singapore on the other hand has gone for steps beyond the purview of the
ISPS code for dealing with various potential security issues. Salalah port too has all the required
latest security infrastructure and other measures in place to ensure secure business.

Suggestions
• In today’s world where time is money , being the fastest in the business goes a long way
into helping gain a larger market share and ports are no different. The speed and
efficiency of port operations is a major factor in being competitive and attracting the
biggest deals. Automation of port operations is a great way to achieve this edge and based

Page | 80
on the technology available at the Singapore container terminals the following can be
suggested to be implemented at the new container terminal at vallarpadam :

Automation could be explored in the following areas of operations:


• Yard and quay cranes – to automatically load and unload containers
• AGVs – autonomous driving of prime movers to move containers between quay
crane, yard crane areas and warehouses or distriparks.
• Dynamic weighing system – at the terminal gates to monitor the weight of
containers coming in and out of terminals
• Container number recognition system – at the terminal gates, to identify the
containers and integration to database
• Non-containerized cargoes – mechanized systems to aid human labor
• Warehousing and Logistics – space-efficient container storage and optimum
container layout for minimum loading and unloading times

• The Cabotage law should be relaxed which will allow the foreign flag carriers to carry
cargo between Indian ports. This will help in utilizing the full potential of the terminal.
• Provide a lot more container related services like chemical care , reefer care etc. which
will serve as a value addition and attract shippers to the port.
• Have aggressive marketing strategies to attract a major share of the transshipment.
As for the Rajiv Gandhi container terminal the following can be suggested:

• Increase the space for container stacking area.

• Increase the draft of the berth at the container Terminal.

Page | 81
Chapter 7
References

References

• http://www.singaporepsa.com/
• http://www.mpa.gov.sg/
• http://www.skyscrapercity.com/
• http://www.salalahport.com/
• http://www.sagt.com.lk/
• http://www.slpa.lk/

Page | 82
• http://www.dpworld.com/
• http://www.cochinport.com/
• http://www.worldportsource.com/
• http://en.wikipedia.org/
• http://www.proquest.com
• http://www.emeraldinsight.com/
• Promoting Efficient and Competitive Intra-ASEAN Shipping Services – Singapore
Country Report – by PDP Australia Pty Ltd/Meyrick and Associates
• SRI LANKA – Logistics Capacity Assessment Extract Ports
• Comparison Of Port Tariff Structures
• Port privatization, efficiency and competitiveness: Some empirical evidence from
container ports (terminals)I – by Jose Tongzon 1, Wu Heng
• ATIP01.036: Automation at the Port of Singapore - ATIP/Singapore

Page | 83